{"id":414,"date":"2024-06-25T01:45:32","date_gmt":"2024-06-25T01:45:32","guid":{"rendered":"https:\/\/homesinlincolnnebraska.com\/?p=414"},"modified":"2024-07-04T13:49:59","modified_gmt":"2024-07-04T13:49:59","slug":"courts-block-parts-of-biden-student-loan-repayment-plan","status":"publish","type":"post","link":"https:\/\/homesinlincolnnebraska.com\/index.php\/2024\/06\/25\/courts-block-parts-of-biden-student-loan-repayment-plan\/","title":{"rendered":"Courts block parts of Biden student loan repayment plan"},"content":{"rendered":"
Two federal judges in Missouri and Kansas halted sections<\/a> of a Biden administration initiative intended to lower student loan payments, raising questions for the millions of Americans impacted by the program.<\/p>\n In Kansas, Judge Michael Crabtree ruled that the Department of Education can\u2019t enact the full scope of the Saving on a Valuable Education (SAVE)<\/a> program. Program participants with undergraduate student loan debt were scheduled to see their payments half next month, from 10 percent to 5 percent of their income 225 percent above the poverty line.<\/p>\n Crabtree, an Obama appointee, said the department did not get explicit authority for that portion of the program from Congress.<\/p>\n That challenge was led by Kansas Attorney General Kris Kobach (R) and joined by 11 other Republican states. Crabtree ruled<\/a> earlier this month that eight of the 12 states did not have standing in the case, leaving only Alaska, Texas and South Carolina.<\/p>\n In Missouri, Judge John Ross\u2014also an Obama appointee\u2014ruled that the Department of Education cannot forgive any loans under SAVE, finding that forgiving federal loans illegally deprives state loan operators of revenue.<\/p>\n Five other states joined<\/a> Missouri Attorney General Andrew Bailey\u2019s (R) challenge. The argument is the same that the Supreme Court sided with in ruling against President Biden\u2019s initial attempt at mass student loan forgiveness.<\/p>\n \u201cCongress never gave Biden the authority to saddle working Americans with half-a-trillion dollars in other people\u2019s debt. A huge win for the Constitution,\u201d Bailey wrote in a social media post on X<\/a>.<\/p>\n Ross also remarked that SAVE may be too broad to fit under its Congressional mandate, leaving the door open to future challenges over the entire program\u2019s legality.<\/p>\n SAVE has canceled over $5.5 billion in debt for over 400,000 borrowers since its inception, as Biden attempted to maneuver around<\/a> the Supreme Court block of his more sizable forgiveness plan. More than 8 million people have enrolled.<\/p>\n The program is Biden\u2019s marquis student loan forgiveness policy, though is separate from efforts to cancel debt of public sector workers<\/a> and for those defrauded<\/a> by for-profit schools.<\/p>\n SAVE will continue to operate as the two lawsuits continue to be litigated, though Monday\u2019s ruling effectively freezes the program\u2019s extent and pauses all future loan forgiveness.<\/p>\n