Federal appeals court blocks the last of Biden's student debt forgiveness plan

The Eighth Circuit Court of Appeals on Thursday blocked the rest of President Joe Biden's Saving on a Valuable Education (SAVE) plan, which would have lowered monthly payments for millions of student loan borrowers. 

The block is the latest ruling on the controversial repayment plan, after two federal judges in Kansas and Missouri stopped aspects of the plan that provide a more direct and quick path towards loan cancellation, and that lessen monthly payments. But the 10th Circuit Court of Appeals reversed part of the order and allowed the Education Department to continue the plan.

The Eighth Circuit Court of Appeals' ruling stops all of the SAVE plan, according to the Associated Press.

“Our Administration will continue to aggressively defend the SAVE Plan — which has been helping over 8 million borrowers access lower monthly payments," the department said in a statement. "We won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments.”

The SAVE plan, which is income-driven, was the Biden administration's back up plan after the Supreme Court decided last year to strike down a previous plan that forgave up to $20,000 in student loans for millions of borrowers.

An Education Department spokesperson told CNBC that the department is currently assessing the new ruling and its impacts, and will be in touch with all borrowers that will be affected.

The case is expected to go to the Supreme Court.

Misty Severi is an evening news reporter for Just The News. You can follow her on X for more coverage.