A federal judge appointed by President Obama on Monday blocked parts of the Biden administration's Savings for Valuable Education (SAVE) plan in response to a lawsuit brought by Republican states.
Judges John A. Ross of Missouri and Daniel Crabtree of Kansas blocked parts of the government's SAVE Act. planIt was an income-contingent repayment program that was meant to lower borrowers' monthly payments, and the court ruling bars the Department of Education from further lowering payments or eliminating any more debt through the program, Politico reported. report.
Loss Domination Under the plan, the defendants would be provisionally barred from further loan forgiveness for borrowers until the court has fully considered the case, and Crabtree would be temporarily barred from further loan forgiveness for borrowers. I was blocked Part of that program will further reduce monthly payments for some borrowers, according to court documents. Judge Ross' order takes effect immediately, while the other order takes effect June 30, giving the administration time to appeal. (Related story: Biden's latest maneuver to reform student loans goes against Congress' wishes, reports say)
WASHINGTON, DC – JUNE 29: U.S. President Joe Biden delivers a statement on the Supreme Court’s decision on affirmative action in higher education in the Roosevelt Room of the White House in Washington, DC on June 29, 2023. (Photo by Chip Somodevilla/Getty Images)
“We strongly oppose the district court decisions in Kansas and Missouri that block elements of the SAVE Plan that help student loan borrowers afford their monthly payments and avoid default. The Department of Justice will continue to vigorously defend the SAVE Plan,” said U.S. Secretary of Education Miguel Cardona. Said In a statement.
Kansas Attorney General Kris Kobach submitted Missouri Attorney General Andrew Bailey, who filed the lawsuit in March submitted Both cases stem from the fact that the loan forgiveness system was deemed unconstitutional.
“A president cannot thwart the Constitution when it suits his political purposes. I am suing to stop the president's brazen attempt to ingratiate himself with some Americans by pushing debt onto others. As long as I am Attorney General, the Constitution will continue to have meaning,” Bailey said. press release When the first lawsuit was filed.
In June 2023, the Supreme Court used its executive power to strike down the government's student loan forgiveness plan for about 40 million Americans. Biden introduced the SAVE plan immediately after the Supreme Court ruling, which would limit student loan payments to 5% of a borrower's monthly income, down from a 10% cap.
The Missouri and Kansas attorneys general's offices did not immediately respond to requests for comment from the Daily Caller News Foundation.
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