Federal Judges Block Biden's Student Loan Relief Plan
Submitted by MAGA
Posted 95 days ago
Federal judges in Kansas and Missouri have blocked parts of President Biden's student loan repayment plan, which aimed to provide a faster path to cancellation and lower monthly payments for millions of borrowers. The rulings, issued by U.S. District Judge Daniel Crabtree in Kansas and U.S. District Judge John Ross in Missouri, prevent the U.S. Department of Education from implementing certain aspects of the plan, which was set to take effect on July 1.
In Kansas, Judge Crabtree ruled in a lawsuit filed by Kansas Attorney General Kris Kobach on behalf of his state and 10 others. The judge allowed parts of the program that allow students who borrowed $12,000 or less to have the rest of their loans forgiven if they make 10 years' worth of payments, instead of the standard 25. However, Crabtree said that the Department of Education won’t be allowed to implement parts of the program meant to help students who had larger loans and could have their monthly payments lowered and their required payment period reduced from 25 years to 20 years.
In Missouri, Judge Ross' order applies to different parts of the program than Crabtree's. His order says that the U.S. Department of Education cannot forgive loan balances going forward. He said the department still could lower monthly payments. Ross issued a ruling in a lawsuit filed by Missouri Attorney General Andrew Bailey on behalf of his state and six others.
Both judges, appointed by former President Barack Obama, a Democrat, concluded that the states were likely to prevail in a trial, and their orders are preliminary, meaning the injunctions imposed by the judges would remain in effect through a trial of the separate lawsuits.
The White House said it strongly disagrees with the judges’ rulings and would continue to defend the program, and use every available tool to give relief to students and borrowers. In a statement, White House press secretary Karine Jean-Pierre said the Biden administration “will never stop fighting for students and borrowers — no matter how many roadblocks Republican elected officials and special interests put in our way.”
The rulings come after the U.S. Supreme Court last year rejected the Democratic president’s first attempt at a forgiveness plan. The lawsuits argue that the Biden administration overstepped its authority when it implemented the SAVE (Saving on a Valuable Education) repayment plan.
To date, $5.5 billion has been canceled for 414,000 people enrolled in SAVE. More than 8 million borrowers have enrolled in SAVE so far, and 4.6 million of them have a $0 monthly payment. The SAVE plan also prevents balances from ballooning due to interest when a borrower has a small monthly payment. If enrolled in SAVE, unpaid interest does not accrue if a borrower makes a fully monthly payment.
The rulings are a significant setback for the Biden administration's efforts to provide relief to student borrowers. The Department of Education did not immediately respond to a request for comment.
Sources:
ourgoldguy.com
spectrumlocalnews.com
abc7chicago.com
In Kansas, Judge Crabtree ruled in a lawsuit filed by Kansas Attorney General Kris Kobach on behalf of his state and 10 others. The judge allowed parts of the program that allow students who borrowed $12,000 or less to have the rest of their loans forgiven if they make 10 years' worth of payments, instead of the standard 25. However, Crabtree said that the Department of Education won’t be allowed to implement parts of the program meant to help students who had larger loans and could have their monthly payments lowered and their required payment period reduced from 25 years to 20 years.
In Missouri, Judge Ross' order applies to different parts of the program than Crabtree's. His order says that the U.S. Department of Education cannot forgive loan balances going forward. He said the department still could lower monthly payments. Ross issued a ruling in a lawsuit filed by Missouri Attorney General Andrew Bailey on behalf of his state and six others.
Both judges, appointed by former President Barack Obama, a Democrat, concluded that the states were likely to prevail in a trial, and their orders are preliminary, meaning the injunctions imposed by the judges would remain in effect through a trial of the separate lawsuits.
The White House said it strongly disagrees with the judges’ rulings and would continue to defend the program, and use every available tool to give relief to students and borrowers. In a statement, White House press secretary Karine Jean-Pierre said the Biden administration “will never stop fighting for students and borrowers — no matter how many roadblocks Republican elected officials and special interests put in our way.”
The rulings come after the U.S. Supreme Court last year rejected the Democratic president’s first attempt at a forgiveness plan. The lawsuits argue that the Biden administration overstepped its authority when it implemented the SAVE (Saving on a Valuable Education) repayment plan.
To date, $5.5 billion has been canceled for 414,000 people enrolled in SAVE. More than 8 million borrowers have enrolled in SAVE so far, and 4.6 million of them have a $0 monthly payment. The SAVE plan also prevents balances from ballooning due to interest when a borrower has a small monthly payment. If enrolled in SAVE, unpaid interest does not accrue if a borrower makes a fully monthly payment.
The rulings are a significant setback for the Biden administration's efforts to provide relief to student borrowers. The Department of Education did not immediately respond to a request for comment.
Sources:
ourgoldguy.com
spectrumlocalnews.com
abc7chicago.com
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