Nate Raymond
| Reuters
Biden unveils student loan relief plan to help with ‘burdensome’ debts
President Joe Biden said his administration plans to deliver interest relief to over 20 million borrowers who are “saddled with unsustainable debts.”
A federal appeals court on Thursday blocked President Joe Biden’s administration from continuing to implement a new student debt relief plan designed to lower monthly payments for millions of Americans.
The St. Louis-based 8th U.S. Circuit Court of Appeals granted a request by seven Republican-led states to put on hold parts of the U.S. Department of Education’s debt relief plan that had not already been blocked by a lower-court judge.
That ruling last month by U.S. District Judge John Ross in St. Louis had blocked the department from granting further loan forgiveness under the administration’s Saving on a Valuable Education (SAVE) Plan but had not blocked all of the plan.
That plan provides more generous terms than past income-based repayment plans, lowering monthly payments for eligible borrowers and allowing those whose original principal balances were $12,000 or less to have their debt forgiven after 10 years.
State attorneys general led by Missouri Attorney General Andrew Bailey subsequently last week asked the 8th Circuit to block the rest of the SAVE Plan. The court did so through a one-page order granting an administrative stay.
Bailey on the social platform X hailed the ruling as a “huge win for every American who still believes in paying their own way.” He said the student loan plan “would have saddled working Americans with half-a-trillion dollars in Ivy League debt.”
In a statement to USA TODAY, the Education Department said the agency is assessing the impacts of the ruling and will be in touch directly with borrowers who could be affected by it.
Contributing: Zachary Schermele, USA TODAY
Source link : https://www.usatoday.com/story/news/education/2024/07/18/biden-student-loan-relief-save-blocked/74459430007/
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Publish date : 2024-07-20 10:39:44
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