Appeals court blocks Biden's student debt relief SAVE Plan

By 
 July 19, 2024

President Joe Biden is pulling out all the stops, trying to garner the attention and love of a much younger voting base.

While the presumed Democrat nominee for president will see some support from the standard Democratic moderate voters, he faces the eternal challenge of attracting and paying a group that would rather pay attention to anything but politics.

Enter: The student loan forgiveness program. If there's anything that will get a Millenial or GenZ's attention, it is the prospect of being a little less broke. That, combined with the general disillusionment many have faced by not using their degrees the way they were promised they would, has given legs to Biden's plan.

However, the presidential campaign plan has run into some trouble in political paradise, as was reported by Axios.

The Trouble at Hand

On Thursday, a U.S. appeals court blocked the implementation of President Biden's SAVE Plan, which aims to alleviate student debt.

Even while it is not a final ruling, the Court of Appeals for the Eighth Circuit has effectively halted all components of the SAVE Plan while the legal proceedings continue with the emergency order.

Parts of the proposal had previously been blocked by earlier decisions made by lower courts.

Oklahoma, North Dakota, North Dakota, North Carolina, North Missouri, and Arkansas—all states governed by Republicans—filed a lawsuit challenging the SAVE Plan.

The Revised Plan

The Biden administration was charged in its April complaint with trying to impose an expensive and divisive policy.

August saw the introduction of Biden's income-driven repayment plan, just as student loan payments were beginning to flow again following a protracted hiatus caused by the pandemic.

The SAVE Plan, which aims to reduce monthly payments and expedite debt forgiveness for those with small sums, was temporarily barred in June by federal judges in Kansas and Missouri.

Concurrent with the announcement of the cancellation of 35,000 public sector workers' $1.2 billion in student debt, the administration also announced the arrival of the appeals court's decision.

The Current Results

For 4.76 million borrowers, the administration has so far forgiven a total of $168.5 billion.

Education Secretary Miguel Cardona responded to the decision by emailing SAVE Plan borrowers, assuring them of interest-free forbearance while the government continues to defend the program in court.

A representative from the Department of Education reassured impacted borrowers that administration officials would be in touch and reiterated the pledge to vigorously defend the SAVE Plan.

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