Court Blocks Biden's SAVE Loan Repayment Plan

The Biden administration's Saving on a Valuable Education (SAVE) student loan repayment plan has faced a significant legal setback after the U.S. 8th Circuit Court of Appeals blocked it, ruling that the administration exceeded its authority as the plan was seen as a backdoor debt cancellation costing taxpayers up to $500 billion over a decade. Republican-led states, including Missouri and Arkansas, led the lawsuit, arguing that the plan imposed an undue financial burden on working Americans. The Department of Education has stated that borrowers will not be expected to make payments until at least December, as the case continues to be litigated. The Biden administration has vowed to continue defending the plan, which had previously helped over 8 million borrowers access lower or zero monthly payments.