A marquee part of President Biden’s student debt relief plan, aimed at reducing the monthly payments of millions of borrowers, was put on pause by the Eighth Circuit Court of Appeals.



In a ruling issued on Thursday, the court granted a motion made by a group of Republican-led states that brought the case, to put the SAVE plan on hold.



The lawsuit brought by the Republican led states is aimed at dismantling Mr. Biden’s student loan relief plan in its entirety. The case could affect the 8 million Americans who currently use the plan as part of their student loan repayment strategy.



Americans are staggering under $1.6 trillion in student debt, which Democrats call a crisis. Republicans have argued that allowing borrowers to pay off loans with lower monthly payments is unfair.



Missouri attorney general Andrew Bailey, one of the Republicans seeking to dismantle the plan called the ruling a “HUGE win for every American who still believes in paying their own way.”



“The Court granted our emergency motion to BLOCK Joe Biden’s entire illegal student loan plan, which would have saddled working Americans with half-a-trillion dollars in Ivy League debt,” Mr. Bailey said.



According to the Education Department student debt taken out by attendees to highly selective schools only accounts for about 12 percent of student debt. For comparison, debt from attendees to two-year schools and for-profit schools alone represents 24 percent of debt.



For those using the SAVE plan, their accounts will be placed in interest free forbearance while the case works its way through the appeals process, according to the Secretary of Education, Miguel Cardona.



“Today’s ruling from the 8th Circuit blocking President Biden’s SAVE plan could have devastating consequences for millions of student loan borrowers crushed by unaffordable monthly payments if it remains in effect,” Mr. Cardona said in a statement. “It’s shameful that politically motivated lawsuits waged by Republican elected officials are once again standing in the way of lower payments for millions of borrowers.”



There are currently ten Republican appointed judges on the circuit court that granted the Republican states the pause and just a single Democratic appointed judge.



The case at the 8th Circuit Court is one of a few challenges to Mr. Biden’s debt relief program percolating through the court system at the moment. The 10th Circuit Court of Appeals issued a ruling earlier this month allowing the lower monthly payments to continue.



“Our Administration will continue to aggressively defend the SAVE Plan — which has been helping over 8 million borrowers access lower monthly payments, including 4.5 million borrowers who have had a zero dollar payment each month,” the administration said in a statement. “And, we won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments.”

President Biden delivers remarks on canceling student debt at Culver City, California's Julian Dixon Library on February 21, 2024. 

Appeals Court Blocks Rest of Biden’s Student Debt Relief Plan, in Latest Legal Blow to President

Republicans had sued to block the Biden student debt relief plan, arguing it was wasteful and unfair to students who'd borrowed responsibly.

Appeals Court Blocks Rest of Biden's Student Debt Relief Plan

Home

The New York Sun

https://wp.nysun.com/wp-content/uploads/2022/07/the-new-york-sun-og.jpg

Afrikaner refugees from South Africa holding American flags arrive, Monday, May 12, 2025, at Dulles International Airport.

Citing Racial Bias by Trump Administration, Episcopal Church Opts Out of Federal Refugee Resettlement Funding Rather Than Accept White South Africans

Environmental Protection Agency Administrator Lee Zeldin.

EPA Administrator Promises Action To Eliminate Automatic Engine Shut-Off Devices Now Common in American Vehicles

President Trump signs an executive order during an event in the East Room of the White House, April 8, 2025, at Washington.

Trump and His Inner Circle Are Entertaining Something a Critic Calls ‘Nuts’: Suspension of Habeas Corpus To Jump-Start Deportations

New York Republicans like Representative Elise Stefanik have already issued their displeasure with the bill, saying that a $30,000 cap is “insulting” to their voters. 

Republicans Unveil $4 Trillion Tax Bill Including Trump’s Elimination of Taxes on Tips and Overtime

CBS News has been denounced by President Trump for its editing of the '60 Minutes' Kamala Harris interview.

Settlement Talks Between Paramount and Trump ‘End With a Whimper’: Two Sides Too ‘Far Apart’ on Resolving CBS News ‘60 Minutes’ Lawsuit

The Federal Reserve chairman, Jerome Powell, after the Federal Open Market Committee meeting, May 7, 2025, at Washington. 

Guess Who’s Worrying About the Fed’s Dual Mandate

A Boeing aircraft that President Trump toured amid concerns about delays of the new Air Force One takes off from Palm Beach International Airport on February 16, 2025.

Qatargate: Now an Ultra-Luxurious Jumbo Jet for President Trump’s Use

The United States Trade Representative, Jamieson Greer, left, and Secretary Bessent at Geneva, May 12, 2025.

Appeals Court Blocks Rest of Biden’s Student Debt Relief Plan, in Latest Legal Blow to President

To continue reading, please select:

Enter your email to read for FREE

Join the Sun for a PENNY A DAY

Sections

More

Sign in or create a free account

A login link has been sent to