Two federal court judges in Kansas and Missouri have halted parts of the Biden administration’s student loan repayment plan introduced last year, which aims to lower borrowers’ monthly payments and expedite debt forgiveness.
The injunctions stem from lawsuits filed by Republican-led states, claiming that the administration exceeded its authority with the SAVE (Saving on a Valuable Education) repayment plan.
On Monday, both judges issued partial preliminary injunctions, pausing two aspects of the SAVE plan until the cases are fully resolved.
As a result, the Biden administration cannot cancel any more federal student debt for borrowers enrolled in the SAVE plan. Under this plan, borrowers become eligible for debt forgiveness after making at least 10 years of payments. So far, $5.5 billion has been canceled for 414,000 people enrolled in SAVE.
The Biden administration is now blocked from implementing further provisions of the SAVE plan. In July, millions of borrowers anticipated their payments would be lowered, but it is now uncertain whether those reductions will take place.