Biden’s student loan forgiveness plan suffers huge blow as two federal judges block key measure that would cost nation $160 BILLION – here’s what if means for you

Biden’s student loan forgiveness plan suffers huge blow

Joe Biden’s student debt relief plan suffered a major hit Monday as two federal judges partially blocked a measure that would’ve cost the nation $160 million.

Joe Biden‘s student debt relief plan suffered a major hit Monday as two federal judges partially blocked a measure of a plan that is costing the nation $160 billion.

Two federal judges in Kansas and Missouri on Monday sided with several Republican-led states and stopped the Democrat from moving forward with a key student debt relief initiative.

In total, the Administration has already approved almost $160 billion in relief for nearly 4.6 million borrowers. 

U.S. District Judge Daniel Crabtree in Wichita, Kansas, blocked the U.S. Department of Education from proceeding with parts of a plan set to take effect July 1 designed to lower monthly payments and speed up loan forgiveness for millions of Americans.

He ruled shortly before U.S. District Judge John Ross in St. Louis, Missouri, issued a preliminary injunction barring the department from granting further loan forgiveness under the administration’s Saving on a Valuable Education (SAVE) Plan.

The SAVE plan is meant to tie monthly payments to the income and family size of a borrower. 

This measure has already been used by eight million people, with over half with payments down to $0, according to CNN. 

The plan was hatched by the Biden administration after their initial loan forgiveness program was stopped by the Supreme Court. 

As part of the rulings, the White House must stop canceling federal student debt for those enrolled. 

Biden and the Department of Education is yet to comment on the rulings. 

The lawsuit reprises a courtroom showdown between the Biden administration and Missouri, which was a central figure in the Supreme Court case that overturned the Democratic president´s first try at loan cancellation last year.

In that case, the Supreme Court found that loan cancellation would harm Missouri because of its affiliation with a quasi-state loan servicing company, MOHELA, that stood to lose revenue generated by federal student loans.

The new lawsuit makes a similar argument. Biden´s new SAVE Plan speeds up an existing path to loan cancellation, which the suit says would deprive MOHELA – the Missouri Higher Education Loan Authority – of ‘up to 15 years in servicing fees.’

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Congressman Byron Donalds on X (formerly Twitter): “Biden doesn’t have authority to cancel student debt.Supreme Court told him NO.Congress told him NO.But he does it anyway.He’s VIOLATING Separation of Powers.Nearly 2/3 of Americans didn’t go to college & MILLIONS paid-off/never had loans. This is unconstitutional & unfair. pic.twitter.com/pM8IKHufuo / X”

Biden doesn’t have authority to cancel student debt.Supreme Court told him NO.Congress told him NO.But he does it anyway.He’s VIOLATING Separation of Powers.Nearly 2/3 of Americans didn’t go to college & MILLIONS paid-off/never had loans. This is unconstitutional & unfair. pic.twitter.com/pM8IKHufuo

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