In two federal court rulings Monday, judges in Kansas and Missouri blocked President Biden’s SAVE repayment program, the latest version of his student loan forgiveness plan.
Two Republican-led states, Missouri and Kansas, had sued the administration, alleging that the SAVE program was an attempted workaround after the U.S. Supreme Court blocked the broader Biden loan forgiveness program last year. Under SAVE, a borrower’s student loan payment would be based on their income and family size, and borrowers would pay no more than 5% of their discretionary income on student loans.
The program would also prevent interest from accruing when a borrower paid the loan amount but couldn’t cover the interest. It would forgive borrowers who owe $12,000 or less after 10 years. More than 8 million people who were about to see those savings must now wait indefinitely until the matter works its way through the courts.
The Biden administration and the U.S. Department of Education vowed to continue fighting for the program. The case could end up back before the U.S. Supreme Court.
