Judge Halts Further Student Loan Forgiveness Under Biden's SAVE Plan

A federal judge on Monday temporarily barred the Biden administration from proceeding with additional student loan forgiveness under the income-driven repayment plan known as SAVE. The ruling came after several states filed lawsuits, arguing that the administration overstepped its authority.

Key Points:

• The SAVE plan was designed to provide relief to millions of borrowers.


• The judge's order halts further loan cancellations until the case is decided.


• Missouri Attorney General Andrew Bailey celebrated the ruling as a win for constitutional checks and balances.

White House press secretary Karine Jean-Pierre criticized the ruling, stating that it undermines efforts to provide financial relief to students. Education Secretary Miguel Cardona noted that similar authorities have been used for decades to implement repayment plans. The Justice Department has yet to comment on the rulings.

Despite these setbacks, the Biden administration has successfully canceled $167 billion in student debt for 4.75 million borrowers through various administrative actions. The legal battles over student loan forgiveness are expected to continue, with significant implications for borrowers and federal policy.