A federal appeals court blocked the Biden administration’s new student loan relief plan, known as SAVE, on Thursday. The 8th Circuit Court of Appeals ruled in favor of a request by Republican-led states to halt the full implementation of the program. Parts of the plan had already been blocked by a lower court last month.
According to the White House, eight million people have enrolled in SAVE, including 4.5 million borrowers who have a zero-dollar payment each month. The repayment plan aims to lower monthly payments by linking them to a borrower’s income.
“We are assessing the impacts of this ruling and will be in touch directly with borrowers regarding any effects on them. Our Administration will continue to aggressively defend the SAVE Plan… we won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments,” said White House spokesperson Angelo Fernández Hernández in a statement to the media.
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The SAVE plan, which has been in place for almost a year, is a key component of Biden’s student loan efforts and has been prominently featured in his reelection campaign.
