Federal judges block Biden's student loan debt forgiveness program

By 
 June 26, 2024

Students and student-aged Americans who believed they were on the verge of having their loan payments forgiven and/or knocked down received a surprise awakening this week.

Federal judges around the country have issued rulings blocking President Joe Biden from implementing his student loan forgiveness program.

According to CNBC, federal judges in Kansas and Missouri are the latest to issue such rulings.

The decisions blocked President Biden's rollout of his Saving on a Valuable Education income-driven repayment plan -- a highly controversial plan that many believe was simply a way for the struggling Biden campaign to buy votes.

What's going on?

The decisions issued by the federal judges were nothing less than death knells for the program, as the rulings eliminated the possibility of the Biden administration from forgiving any more federal studen loan debt through the program.

CNBC noted:

Borrowers’ monthly payments are currently calculated as 10% of their discretionary income, which was scheduled to drop to 5% in July. Some borrowers have already seen their loans forgiven due to the SAVE plan.

In February, the administration started clearing balances for borrowers on the SAVE plan who’d been repaying their loans for at least 10 years and started with low initial balances. Now, borrowers who otherwise would be eligible for forgiveness under this plan will wait in limbo while the district courts decide whether the Biden administration has the authority to forgive more debt.

Secretary of Education Miguel Cardona issued a statement in the wake of the rulings, insisting that the SAVE program would be defended.

"The Department of Justice will continue to vigorously defend the SAVE Plan," Cardona's statement read.

The rulings generated plenty of backlash and praise across social media.

Reactions pour in

Missouri Attorney General Andrew Bailey released a statment in the wake of the rulings on his X account.

"BREAKING: The Court has granted our motion to BLOCK Joe Biden’s illegal student loan plan. Congress never gave Biden the authority to saddle working Americans with half-a-trillion dollars in other people's debt. A huge win for the Constitution," Bailey wrote.

Only time will tell if additional states follow.

Hopefully, that's the case.

" A free people [claim] their rights, as derived from the laws of nature."
Thomas Jefferson
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