Biden's Student Loan Forgiveness Plan Faces Major Legal Hurdles

Court rulings halt the SAVE plan, affecting millions of borrowers and setting the stage for a potential Supreme Court battle.

The 8th Circuit Court has blocked the Biden administration's SAVE plan, pausing payments for over 8 million borrowers.
Eighteen Republican attorneys general are challenging the legality of the SAVE plan, arguing it lacks congressional authorization.
The Education Department has placed borrowers into forbearance, preventing interest accrual but halting progress toward loan forgiveness.
Legal uncertainty leaves the future of student loan forgiveness in doubt, with potential Supreme Court involvement on the horizon.
The Biden administration continues to defend the SAVE plan, aiming to reduce the financial burden on borrowers despite legal setbacks.