Department Of Education Asks SCOTUS To Lift Block On SAVE Plan

Two groups of GOP-led states filed lawsuits arguing the president does not have the legal authority to implement the plan.

The Department of Education asked the Supreme Court to lift a new block on President Biden’s student loan repayment plan dubbed ‘SAVE.’

Two groups of GOP-led states filed lawsuits arguing the president does not have the legal authority to implement the plan. It ties borrower’s monthly payments to their income and family size. It also aims to slash monthly payments and quicken the path to loan forgiveness.

The 8th U.S. Circuit Court of Appeals has now halted the plan due to the litigation in two separate cases. Borrowers under the plan now have a forbearance placed on their loans until matters are reviewed.

However, the Department of Education argues the block is harming millions of borrowers and creating uncertainty for students returning to college this month.