Federal Appeals Court Halts Biden's Student Debt Relief Plan

A federal appeals court in St. Louis has temporarily blocked President Joe Biden's new student debt relief plan. This plan aimed to reduce monthly payments for millions of Americans, but seven Republican-led states requested its suspension. The Education Department has yet to comment on the ruling.

A federal appeals court on Thursday halted President Joe Biden's administration from advancing a new student debt relief plan designed to lower monthly payments for millions of Americans.

The St. Louis-based 8th U.S. Circuit Court of Appeals granted a request by seven Republican-led states to temporarily suspend parts of the U.S. Department of Education's debt relief plan, which had not already been blocked by a lower court.

Last month, U.S. District Judge John Ross in St. Louis blocked further loan forgiveness under the administration's Saving on a Valuable Education (SAVE) Plan but did not block the entire plan. The SAVE Plan proposes more generous terms than previous income-based repayment plans, reducing monthly payments for eligible borrowers and allowing those with original principal balances of $12,000 or less to have their debt forgiven after 10 years.

State attorneys general, led by Missouri Attorney General Andrew Bailey, asked the 8th Circuit last week to block the remaining aspects of the SAVE Plan. The court issued an administrative stay via a one-page order. On social media platform X, Bailey celebrated the ruling as a "huge win for every American who still believes in paying their own way," arguing the student loan plan would burden working Americans with half-a-trillion dollars in Ivy League debt.

The Education Department has not yet responded to requests for comment.

(With inputs from agencies.)