Two courts pause parts of Biden admin student loan repayment plan

Two federal judges on Monday have halted a part of President Joe Biden's student loans repayment plan, which would have given borrowers a faster route to debt forgiveness.

The judges in Kansas and Missouri granted partial preliminary injunctions after two lawsuits argued that the Biden administration overstepped its authority with the repayment plan that was launched last year. 

The injunctions stop the Biden administration from cancelling any additional student loans, and from implementing additional provisions of the Saving on a Valuable Education (SAVE) plan, according to CNN. 

The injunction in Kansas was part of a larger lawsuit that was filed by 11 states in March, which claimed the SAVE plan  “transforms many or most loans into outright grants from the federal government — without any appropriation from Congress.” Missouri filed its own lawsuit, along with a coalition of seven other states shortly after.

Under the SAVE plan, borrowers could have their debts forgiven in just 10 years if they borrowed less than $12,000. For every $1,000 above $12,000 would add an extra year of repayments, so it would take 13 years for people who borrowed $15,000. 

The plan also stops debt from increasing rapidly due to interest. For example, if a borrower's minimum payment was only $30 a month, but interest grew the monthly payment to $50 a month, the additional $20 would be dismissed.

The ruling was celebrated by Missouri Attorney General Andrew Bailey, who touted the court's decision as a "huge win for the Constitution."

"The Court has granted our motion to BLOCK Joe Biden’s illegal student loan plan," Bailey posted on X Monday. “Congress never gave Biden the authority to saddle working Americans with half-a-trillion dollars in other people’s debt."

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