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.