A federal appeals court extended its pause on President Joe Biden’s student debt relief plan, setting up a likely date with the U.S. Supreme Court, The Hill reported on Friday.
In July, the St. Louis-based 8th U.S. Circuit Court of Appeals granted a request by seven GOP-led states to suspend portions of the U.S. Department of Education’s debt forgiveness plan that had not already been blocked by a lower court judge. On Friday, the court’s revised ruling prevented Biden’s DOE from proceeding with the debt relief plan until the lawsuit challenging it is resolved.
The Saving on a Valuable Education (SAVE) Plan is an income-based repayment (IBR) plan that aims to give more benefits to borrowers by lowering monthly payments for eligible candidates and allowing those whose original balance were $12,000 or less to have their debt forgiven after 10 years. The court noted that Biden’s plan would ultimately forgive “approximately $475 billion in federal student loan debt.”
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