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Federal Court Extends Block on Biden's SAVE Student Loan Plan

Ruling halts further implementation of the debt relief program, affecting millions of borrowers.

CHAPEL HILL, NORTH CAROLINA - JUNE 29: People walk on the campus of the University of North Carolina Chapel Hill on June 29, 2023 in Chapel Hill, North Carolina.  The U.S. Supreme Court ruled that race-conscious admission policies used by Harvard and the University of North Carolina violate the Constitution, bringing an end to affirmative action in higher education.  (Photo by Eros Hoagland/Getty Images)
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Overview

  • The 8th U.S. Circuit Court of Appeals issued an injunction against the SAVE plan, pending further legal review.
  • Eight million borrowers currently enrolled in the plan are now in forbearance and will not have to make payments temporarily.
  • The court's decision follows previous legal challenges to Biden's broader $430 billion student debt relief initiative.
  • Republican-led states argue that the plan exceeds the Department of Education's legal authority and imposes undue costs on taxpayers.
  • The Biden administration may seek intervention from the Supreme Court to lift the injunction.