Federal appeals court blocks remainder of Biden's student debt relief plan

https://ktla.com/news/politics/ap-politics/ap-federal-appeals-court-
blocks-remainder-of-bidens-student-debt-relief-plan/

WASHINGTON (AP) — A federal appeals court blocked the implementation of 
the Biden administration’s student debt relief plan, which would have 
lowered monthly payments for millions of borrowers.

In a ruling Thursday, the 8th Circuit Court of Appeals granted a motion 
for an administrative stay filed by a group of Republican-led states 
seeking to invalidate the administration’s entire student loan forgiveness 
program. The court’s order prohibits the administration from implementing 
the parts of the SAVE plan that were not already blocked by lower court 
rulings.

The ruling comes the same day that the Biden administration announced 
another round of student loan forgiveness, this time totaling $1.2 billion 
in forgiveness for roughly 35,000 borrowers who are eligible for the 
Public Service Loan Forgiveness program.

The PSLF program, which provides relief for teachers, nurses, firefighters 
and other public servants who make 120 qualifying monthly payments, was 
originally passed in 2007. But for years, borrowers ran into strict rules 
and servicer errors that prevented them from having their debt cancelled. 
The Biden administration adjusted some of the programs rules and 
retroactively gave many borrowers credits towards their required payments.

Borrowers who are enrolled in the SAVE plan, which was the subject of 
Thursday’s ruling, will be placed into interest-free forbearance while the 
case works its way through the legal system, Education Secretary Miguel 
Cardona said Thursday.

“Today’s ruling from the 8th Circuit blocking President Biden’s SAVE plan 
could have devastating consequences for millions of student loan borrowers 
crushed by unaffordable monthly payments if it remains in effect,” Cardona 
said in a statement. “It’s shameful that politically motivated lawsuits 
waged by Republican elected officials are once again standing in the way 
of lower payments for millions of borrowers.”

Two separate legal challenges to Biden’s SAVE plan have worked their way 
through the courts. In June, federal judges in Kansas and Missouri issued 
separate rulings that blocked much of the administration’s plan to provide 
a faster path towards loan cancellation and reduce monthly income-based 
repayment from 10% to 5% of a borrower’s discretionary income. Those 
injunctions did not affect debt that had already been forgiven.

The 10th Circuit Court of Appeals issued a ruling that allowed the 
department to proceed with the lowered monthly payments. Thursday’s order 
from the 8th circuit blocks all aspects of the SAVE plan.

The Education Department said it was reviewing the ruling. “Our 
Administration will continue to aggressively defend the SAVE Plan — which 
has been helping over 8 million borrowers access lower monthly payments, 
including 4.5 million borrowers who have had a zero dollar payment each 
month,” the administration said. “And, we won’t stop fighting against 
Republican elected officials’ efforts to raise costs on millions of their 
own constituents’ student loan payments.”

—

The Associated Press’ education coverage receives financial support from 
multiple private foundations. AP is solely responsible for all content. 
Find AP’s standards for working with philanthropies, a list of supporters 
and funded coverage areas at AP.org.


-- 
We live in a time where intelligent people are being silenced so that 
stupid people won't be offended.

Durham Report: The FBI has an integrity problem.  It has none.

No collusion - Special Counsel Robert Swan Mueller III, March 2019.  
Officially made Nancy Pelosi a two-time impeachment loser.

Thank you for cleaning up the disaster of the 2008-2017 Obama / Biden 
fiasco, President Trump.  

Under Barack Obama's leadership, the United States of America became the 
The World According To Garp.  Obama sold out heterosexuals for Hollywood 
queer liberal democrat donors.

President Trump boosted the economy, reduced illegal invasions, appointed 
dozens of judges and three SCOTUS justices.