WASHINGTON — Una Cut federal of appeals blocked the implementation of the relief plan debt student government of President Joe Biden, which would have reduced monthly payments for millions of borrowers.
In a ruling Thursday, the Eighth Circuit Court of Appeals granted a motion for administrative stay filed by a group of Republican-led states seeking to invalidate the federal government’s entire student loan forgiveness program. The court’s order bars the government from implementing the parts of the SAVE plan that have not already been blocked by lower court rulings.
The ruling comes on the same day the Biden administration announced another round of student loan forgiveness, this time totaling $1.2 billion for roughly 35,000 borrowers who are eligible for the Public Service Loan Forgiveness program.
The PSLF program, which provides relief to teachers, nurses, firefighters and other public servants who make 120 qualifying monthly payments, was originally approved in 2007. But for years, borrowers ran into strict rules and administrative errors that prevented them from repaying their debt. The Biden administration adjusted some of the program’s rules and retroactively gave many borrowers credit toward required payments.
