Federal court blocks Biden's new student debt relief plan, denies some student loan forgiveness.


In 2022, Biden announced the SAVE plan to directly forgive part of student loans, but this plan has still not been approved.

Under the push of Republican leadership in multiple states, two federal judges in Kansas and Missouri halted the further implementation of President Biden's new student debt relief plan on Monday, which aims to reduce repayment amounts for borrowers.

U.S. District Judge Daniel Crabtree in Wichita, Kansas, blocked parts of the student loan repayment plan by the U.S. Department of Education that had not yet taken effect, which sought to reduce monthly repayment amounts for borrowers and provide a quicker path to debt forgiveness.

He made this ruling before a preliminary injunction issued by U.S. District Judge John Ross in St. Louis, Missouri, prohibited the Department of Education from further loan forgiveness under the government's "Saving on a Valuable Education" (SAVE) plan.

The SAVE plan offers more favorable terms than previous income-driven repayment plans, reducing monthly repayment amounts for qualifying borrowers and allowing those with an original principal balance of $12,000 or less to have their debt forgiven after ten years.

Missouri Attorney General Andrew Bailey, a Republican, helped lead the lawsuit and praised Ross's decision. He wrote on social media platform X: "Congress never granted Biden the authority to impose half a trillion dollars in debt on hardworking Americans."

The Department of Education and the White House have not yet responded to the ruling.

Biden, a Democrat, announced the SAVE plan in 2022, alongside a broader $430 billion plan that could have fulfilled his campaign promise to cancel up to $20,000 in debt for as many as 43 million Americans. However, this plan was ultimately blocked by the conservative-majority U.S. Supreme Court in June 2023.



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