Two court rulings on the Biden administration's Saving on a Valuable Education program could impact millions of Americans. The future of President Biden’s new student loan repayment plan is in doubt after a pair of federal judges issued separate injunctions Monday preventing the government from fully implementing and forgiving any more loans through the program while they consider lawsuits to end the policy.
In Kansas, U.S. District Judge Daniel D. Crabtree blocked the Biden administration from launching the final component of the Saving on a Valuable Education program, commonly known as Save. Borrowers with undergraduate debt were set to see their payments cut in half this Julyto 5 percent of income above 225 percent of the federal poverty line. Borrowers who also have graduate loans would have had their payments lowered by the weighted average between 5 percent and 10 percent.
In the separate ruling in Missouri, U.S. District Judge John A. Ross enjoined the Education Department from forgiving any more loans through the Save plan. The decision is a win for Missouri Attorney General Andrew Bailey, who led a group of six states in filing a lawsuit in April seeking to overturn the program.