by Adam S Minsky at Forbes
Updated, July 18, 2024: This story was adjusted to include a comment from the U.S. Department of Education.
A federal appeals court on Thursday temporarily blocked a key Biden administration student loan forgiveness and repayment plan. The order could have significant ramifications for millions of borrowers.
President Joe Biden’s Saving on a Valuable Education plan is a new income-driven repayment program designed to provide affordable payments and multiple pathways to loan forgiveness. The Education Department unveiled the SAVE plan last year, and began implementing the program in phases. But several groups of Republican-led states filed two separate legal challenges this spring, arguing that the Biden administration exceeded the authority Congress provided.
Thursday’s appeals court ruling is just the latest in a rollercoaster of court orders related to the SAVE legal challenges. The whiplash of rulings has threatened to throw much of the federal student loan repayment system into chaos.
Lower Courts Had Blocked Some Student Loan Forgiveness And Repayment Features Of SAVE
Last month, two federal courts in Kansas and Missouri issued…
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