the staff of the Ridgewood blog
Ridgewood NJ, on Friday, a federal appeals court blocked President Biden’s latest student debt relief initiative, escalating the legal battle that could soon reach the Supreme Court. The 8th U.S. Circuit Court of Appeals issued a ruling that halts the administration’s Saving on a Valuable Education (SAVE) plan, pending resolution of a lawsuit that may take months to unfold.
The court’s decision, which extends a temporary pause imposed last month, effectively prevents the administration from implementing the SAVE plan. In a unanimous 3-0 ruling, the panel described the plan as a “vast assertion of newfound power” and criticized the Biden administration for failing to demonstrate clear authorization from Congress.
“The new SAVE plan … is an order of magnitude broader than anything that has come before,” the court stated in its 10-page opinion, which was unsigned. All three judges on the panel were appointed by Republican presidents, and they dismissed the administration’s attempt to circumvent a previous district court ruling that had invalidated parts of the plan.
The SAVE plan, introduced after the Supreme Court struck down Biden’s earlier universal student debt relief program, was designed to provide significant relief through an income-driven repayment system. The plan’s first phase, implemented last fall, raised the income threshold protected from payments and waived accrued unpaid interest. The second phase, set to begin in July, would have reduced undergraduate loan payments from 10% to 5% of discretionary income and offered additional forgiveness options to certain borrowers.
The ruling adds another layer of uncertainty for borrowers, who have been caught in a whirlwind of conflicting court decisions regarding student debt relief. With this latest setback, the stage is set for a potential Supreme Court review, which could bring a sense of déjà vu for those who have been following the legal saga.
Meanwhile, a separate challenge from three Republican state attorneys general is pushing the Supreme Court to temporarily block the second half of the SAVE plan and consider the case on its merits during the court’s next term. The Justice Department may also seek an emergency appeal to the Supreme Court, or it could ask the court to take up the case in its entirety.
As the legal battles continue to unfold, the fate of Biden’s student debt relief efforts remains in limbo, leaving millions of borrowers wondering what comes next.
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You take out a loan you’re obligation is to pay it back. Period! This bullshit is being pushed by the democrats for votes trying to screw again the regular taxpayers
I can tell those borrowers what comes next, it’s also found in the loan documents they signed.
Hopefully that college education will enable them to find the repayment section.