Federal judges block Biden’s debt repayment plan, halting student debt relief

(US MEDIA GROUP) – President Joe Biden’s effort to ease the burden of student loan debt just got hit with a double whammy, as two federal judges in Kansas and Missouri put a damper on his new repayment plan. The rulings came down on Monday, with judges in both states granting the requests of GOP state attorneys general to block the SAVE income-driven repayment plan. This plan, implemented last summer, aimed to lower borrower’s monthly payments. One of the main provisions of the SAVE plan, which was set to start on July 1, was to cancel student debt for borrowers with original balances of $12,000 or less after making 10 years of qualifying payments. However, according to the attorneys general, this relief was unconstitutional and requested that it be put on hold. The Missouri court, led by Attorney General Andrew Bailey, ruled that the Education Department cannot continue with student-loan forgiveness through SAVE while the legal process plays out. However, borrowers currently enrolled in the plan can still make payments as usual. The ruling stated, “These borrowers have already made payments under the program, have already had those payments calculated under the early implementation of certain provisions of the Final...