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Courts grant injunctions against Biden’s student loan repayment plan
The future of President #Biden’s new #StudentLoan repayment plan is in doubt after a pair of federal judges issued separate #injunctions Mon preventing the govt from fully implementing & forgiving any more loans through the program while they consider lawsuits to end the #policy.
#law #StudentLoanForgiveness #StudentDebt #SAVE #debt #poverty
https://www.washingtonpost.com/education/2024/06/24/student-loan-repayment-plan-lawsuits/
The rulings leave myriad questions about whether borrowers can still enroll or receive promised #LoanCancellation. Millions of Americans could be affected.
In #Kansas, US Dist Judge Daniel D. Crabtree blocked the #Biden admin from launching the final component of the Saving on a Valuable #Education program, commonly known as #SAVE. Borrowers w/ #undergraduate #debt were set to see their payments cut in half in July — from 10% to 5% of income above 225% of the federal #poverty line.
Borrowers who also have #graduate #loans would have had their payments lowered by the weighted avg between 5% & 10%.
That feature of the plan, which launched in Oct, will be shelved while a lawsuit is litigated.
Crabtree, who was appointed by President Barack Obama, wrote that the #Education Dept failed to clearly show that #Congress authorized the repayment plan created by the #Biden admin in 2023.
He said the economic impact of the program, which the Congressional Budget Office estimates will cost ~$230B over the next decade, would require congressional input.
The ruling arrives weeks after Crabtree said 8 of the 11 states challenging the plan failed to adequately show how they would be harmed by the policy. He concluded that only #Alaska, #Texas & #SouthCarolina made a strong enough case that the plan’s #debt-relief component could harm their tax revenue….
The coalition of 11 #Republican-led states, headed by #Kansas AG #KrisKobach, alleged in their lawsuit that the president overstepped his authority in creating the repayment program — claims that mirror the case that last year toppled #Biden’s initial effort to forgive up to $20k in federal #StudentLoans. The states say Biden’s new repayment plan is an attempt to sidestep a #SCOTUS ruling that struck down his #DebtForgiveness program.
In a separate ruling in #Missouri, US Dist Judge John A. Ross #enjoined the #Education Dept from forgiving more #loans thru #SAVE. The decision is a win for MO #Republican AG #AndrewBailey, who led 6 states in filing the lawsuit….
Bailey argued the Missouri Higher Education Loan Authority, a quasi-state agency that services federal #StudentLoans & funds state #scholarships, loses revenue from servicing direct loans — those made & owned by the federal govt — when loans are wiped away.
@Nonilex
They are pathological in their determination to do harm to their constituents.