Two federal judges, one in Kansas and another in Missouri, have recently blocked President Joe Biden’s administration from implementing a new student debt relief plan. At the urging of several Republican-led states, U.S. District Judge Daniel Crabtree in Wichita, Kansas, and U.S. District Judge John Ross in St. Louis, Missouri, issued injunctions preventing the Department of Education from further implementing the plan that would lower payments for student loan borrowers.
The student debt relief plan in question, known as the Saving on a Valuable Education (SAVE) Plan, was aimed at reducing monthly payments for eligible borrowers and providing a faster path to debt forgiveness. However, the judges’ ruling came in response to arguments made by the Republican states against the plan. Missouri Attorney General Andrew Bailey, a key figure in the litigation, raised concerns that Congress never authorized Biden to implement a plan that could potentially burden working Americans with billions of dollars in debt.
Despite the setback, the White House expressed its strong disagreement with the rulings and criticized Republican officials for standing in the way of student debt relief. White House Press Secretary Karine Jean-Pierre reiterated the administration’s commitment to finding alternative ways to provide students and borrowers with the relief they need, emphasizing that the rulings would not deter their efforts.
History of the SAVE Plan
The SAVE Plan was introduced by President Biden in 2022 as part of a comprehensive program that included canceling up to $20,000 in debt for millions of Americans. However, the plan faced resistance from conservative justices on the U.S. Supreme Court and was ultimately blocked in June 2023. Despite this setback, the Education Department reported that thousands of borrowers had already benefited from the plan, with over $5.5 billion in debt relief granted by mid-May.
The legal battle over the SAVE Plan involved eleven states in Kansas and seven states in Missouri. While the judges did not order the reversal of debt relief already granted, they raised concerns about the scope and authorization of the plan under the Higher Education Act of 1965. Judge Crabtree, appointed by former President Barack Obama, questioned the legality of the plan’s expansion of income-based repayment provisions, noting the substantial cost estimated by the Republican-led states.
The fight against student debt relief continues to be a contentious issue, with conflicting views on the role of the government in addressing the growing student loan crisis. The recent court rulings have highlighted the challenges facing the Biden administration in its efforts to provide meaningful relief to millions of borrowers. As the legal battle unfolds, the fate of the SAVE Plan and its potential impact on student loan borrowers remain uncertain.