Court Lifts Ban on Key Part of Biden’s Student Loan Repayment Plan

President Joe Biden’s administration has been given the green light to move forward with a key part of a new program for some people with student loans, as legal challenges to the plan are weighed by courts.

A divided panel of the U.S. Court of Appeals for the Tenth Circuit said in a June 30 decision that it was lifting an injunction that had blocked the administration from starting the program known as the Saving on a Valuable Education (SAVE) plan.

Courts in Kansas and Missouri on June 24 blocked the administration from rolling out the SAVE plan as legal challenges are considered by judges.


In one of those decisions, U.S. District Judge Daniel Crabtree for the District of Kansas said that states appeared likely to ultimately prove the Department of Education did not have explicit authority from Congress to reduce payments and shorten periods of maximum repayment.

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