Biden student loan plan to resume amid legal challenge: appeals court

Biden student loan plan to resume amid legal challenge: appeals court

US President Joe Biden gestures after speaking about student loan debt relief at Madison Area Technical College in Madison, Wisconsin, April 8, 2024. 

Andrew Caballero-Reynolds | AFP | Getty Images

A federal appeals court will allow a key part of President Joe Biden’s student loan relief plan to resume as the legal challenges against it unfold.

In a Sunday ruling, the 10th Circuit Court of Appeals granted the Biden administration’s request to stay an order from last week that temporarily blocked a provision of its Saving on a Valuable Education, or SAVE, plan.

The decision is a major win for President Joe Biden, experts say. The SAVE plan was his biggest accomplishment to date in delivering relief to millions of student loan borrowers. So far, around 8 million borrowers have signed up for the new income-driven repayment plan, according to the White House.

The appeals court ruling will allow the Biden administration to go ahead with lowering borrowers’ monthly payments.

This is breaking news. Please check back for updates.

Original news source Credit: www.cnbc.com

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