Appeals Court Blocks Biden’s Student Debt Relief Plan
Student debt cancellation advocates on Thursday responded to a federal appeals court blocking implementation of one of U.S. President Joe Biden’s relief programs by demanding a shutdown of the whole system to spare borrowers and the economy.
The U.S. Court of Appeals for the 8th Circuit’s temporary ruling against the administration’s Saving on a Valuable Education (SAVE) plan comes just over a year after the Supreme Court struck down Biden’s sweeping student debt cancellation proposal.
Although the high court’s right-wing supermajority has thwarted Biden’s attempt to deliver his promised broad relief, the administration has pursued initiatives including the SAVE program, which sets monthly payments based on borrowers’ income.
Over half of the more than 8 million borrowers who have enrolled in the program have a $0 monthly payment, according to the U.S. Department of Education. SAVE also enables borrowers to have their balances canceled after 10, 20, or 25 years.
GOP state officials led by Kansas Attorney General Kris Kobach challenged the program, leading to Thursday’s ruling — just the latest in a series of various decisions about the program. The 8th Circuit issued a stay until the court rules on a request for a preliminary injunction.
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