by Jaryn Crouson
A federal appeals court on Thursday ordered a short-lived halt to President Joe Biden’s income-driven student loan repayment program over concerns about its legality.
Savings on Valuable Education (SAVE) planwhich was introduced in 2023, aims to provide novel repayment methods for student loan borrowers, including lowering monthly payments based on income and minimizing interest payments. 8th Circuit Court of Appeals Arrested the plan in its entirety to give the court time to issue a final ruling after issuing partial court order in June.
The order was filed by Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma, stemming from an April lawsuit that is still ongoing. The lawsuit challenges Biden has the authority to implement drastic loan forgiveness measures, accusing the president of overstepping his authority and declaring the plan unlawful.
“Appellants’ motion for an emergency stay of the administrative proceeding, prohibiting Appellants from implementing or acting in accordance with the Final Rule until the Court issues a ruling on Appellants’ motion for an injunction pending the disposition of the appeal, will be granted,” the court records read.
A Department of Education spokesman said the federal agency is reviewing the ruling and its impact on borrowers, According to to the Washington Post.
“Today’s ruling by the 8th Circuit blocking President Biden’s SAVE plan could have devastating consequences for millions of student loan borrowers overwhelmed by unmanageable monthly payments if it stands. It is shameful that politically motivated lawsuits filed by Republican elected officials are once again standing in the way of lower payments for millions of borrowers,” U.S. Secretary of Education Miguel Cardona said in a press release. release after making the decision.
“We’ve already approved an unprecedented $169 billion in relief for nearly 4.8 million Americans, including teachers, veterans and other public servants, students defrauded by their colleges, disabled borrowers and more,” Cardona continued. “And from larger Pell Grants to free community colleges, President Biden, Vice President Harris and I continue to believe that college affordability is a cause worth fighting for — and we’re not giving up.”
LATEST: The court has granted our request to immediately BLOCK Joe Biden’s entire illegal student loan plan, which would burden working Americans with half a trillion dollars in Ivy League debt.
A HUGE win for every American who still believes in paying their bills.
— Attorney General Andrew Bailey (@AGAndrewBailey) July 18, 2024
The SAVE plan is expected cost taxpayers $156 billion over a decade and has already reduced the balances of 414,000 enrollees, according to the Post. More than 8 million people who took out federal loans are enrolled in a repayment plan.
In 2023, the Supreme Court he ruled that a separate Biden administration plan to forgive tens of thousands of dollars for each borrower was unconstitutional, saying the Education Secretary exceeded his authority by using emergency powers to do so. The Biden administration’s attempts to do so after losing in court have been met with much challengesincluding lawsuits citing a court ruling and a House of Representatives bill aimed at repeal Biden’s plan due to its unconstitutionality.
The Education Department did not immediately respond to a request for comment.
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Jaryn Crouson is a reporter at the Daily Caller News Foundation.
