Appeals court slams brakes on Biden’s student loan forgiveness plan
In a major setback for the Biden administration, a federal appeals court has broadened a prior block on the student loan forgiveness scheme known as “SAVE.”
The Eighth Circuit Court’s ruling halts any further loan forgiveness.
It also prevents the Department of Education from pausing interest or implementing the payment threshold features.
The court’s decision is driven by a lawsuit from Republican-led states and calls into question the legality of the SAVE plan under the Higher Education Act.
Critics argue the plan exceeds the authority granted by Congress, which has specified conditions for loan forgiveness.
Despite previous rulings in favor of the administration and ongoing appeals, the Biden administration faces another hurdle as it fights to reinstate SAVE’s provisions.
A group of Republican-controlled states led by Missouri sued President Joe Biden alleging the SAVE plan is an unlawful exercise of executive power.