WASHINGTON (AP) — A federal appeals court blocked the implementation of the Biden administration’s student debt relief plan, which would have lowered monthly payments for millions of borrowers.
In a ruling Thursday, the 8th Circuit Court of Appeals granted a motion for an administrative stay filed by a group of Republican-led states seeking to invalidate the administration’s entire student loan forgiveness program. The court’s order prohibits the administration from implementing the parts of the SAVE plan that were not already blocked by lower court rulings.
The ruling comes the same day that the Biden administration announced another round of student loan forgiveness, this time totaling $1.2 billion in forgiveness for roughly 35,000 borrowers who are eligible for the Public Service Loan Forgiveness program.
The PSLF program, which provides relief for teachers, nurses, firefighters and other public servants who make 120 qualifying monthly payments, was originally passed in 2007. But for years, borrowers ran into strict rules and servicer errors that prevented them from having their debt cancelled. The Biden administration adjusted some of the programs rules and retroactively gave many borrowers credits towards their required payments.
Two separate legal challenges to Biden’s SAVE plan have worked their way through the courts. In June, federal judges in Kansas and Missouri issued separate rulings that blocked much of the administration’s plan to provide a faster path towards loan cancellation and reduce monthly income-based repayment from 10% to 5% of a borrower’s discretionary income. Those injunctions did not affect debt that had already been forgiven.
The 10th Circuit Court of Appeals issued a ruling that allowed the department to proceed with the lowered monthly payments. Thursday’s order from the 8th circuit blocks all aspects of the SAVE plan.
The Education Department said it was reviewing the ruling. “Our Administration will continue to aggressively defend the SAVE Plan — which has been helping over 8 million borrowers access lower monthly payments, including 4.5 million borrowers who have had a zero dollar payment each month,” the administration said. “And, we won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments.”
—
The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.
2024-12-24 08:35774 view
2024-12-24 08:311177 view
2024-12-24 08:241861 view
2024-12-24 08:231474 view
2024-12-24 07:542750 view
2024-12-24 07:492839 view
The body of a 73-year-old woman was discovered in her Bedok home on Wednesday (Dec 11), after a neig
MOSCOW (AP) — Imprisoned Russian opposition leader Alexei Navalny on Friday is due to hear the verdi
The National Basketball Players Association is distancing the players of the Orlando Magic from a po