The 8th U.S. Circuit Court of Appeals has blocked President Joe Biden’s student debt relief plan, called the Saving on a Valuable Education (SAVE) Plan. This plan was designed to lower monthly payments for eligible borrowers and offer loan forgiveness for those with original principal balances of $12,000 or less after 10 years. The ruling by the appeals court came in response to a request by seven Republican-led states to halt the implementation of the plan. Missouri Attorney General Andrew Bailey, who led the challenge, celebrated the ruling as a victory for those who believe in paying off their debts. The Education Department is assessing the impacts of the ruling and will be contacting borrowers who could be affected. This decision follows a previous ruling by a lower-court judge in St. Louis that had already blocked some aspects of the SAVE Plan. The court’s decision to halt the entire plan is seen as a setback for the Biden administration’s efforts to provide relief to millions of student loan borrowers.
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