Babaamaajimowinan (Telling of news in different places)

Courts grant injunctions against Biden's student loan repayment plan

The future of President Biden's new student loan repayment plan is in doubt after a pair of federal judges issued separate injunctions Monday preventing the government from fully implementing and forgiving any more loans through the program while they consider lawsuits to end the policy.

The dual rulings leave myriad questions about whether borrowers can still enroll in the plan or receive promised loan cancellation. Millions of Americans could be affected.

In Kansas, U.S. District Judge Daniel D. Crabtree blocked the Biden administration from launching the final component of the Saving on a Valuable Education program, commonly known as Save. Borrowers with undergraduate debt were set to see their payments cut in half in July - from 10 percent to 5 percent of income above 225 percent of the federal poverty line. Borrowers who also have graduate loans would have had their payments lowered by the weighted average between 5 percent and 10 percent.


Reader Comments(0)

Rendered 07/13/2024 15:00