The administration plans to appeal the ruling.
The Eight Circuit U.S. Court of Appeals issued a ruling that blocks the remainder of the Education Department’s SAVE Plan which attempted to implement student loan relief. The decision was released one day after President Biden announced an additional $1.2 billion of debt relief under the Public Service Loan Forgiveness Program (PSLF).
President Biden’s administration has spent much of this year identifying those most qualified for student debt relief and had announced that the department would begin notifying those eligible for the next step in this round of debt cancellation.
Several cases have been brought before federal courts, arguing that the Education Department has gone beyond its constitutional authority since Congress has not approved the student debt relief programs.
An Education Department spokesperson claimed that Congress gave them authority in 1993 to define income-driven repayment plans. The spokesperson said, “The Biden-Harris Administration won’t stop fighting to provide support and relief to borrowers across the country.“
As the Lord Leads, Pray with Us…
- For the federal judges who are hearing challenges to the SAVE Plan and related student debt forgiveness programs.
- For President Biden and Secretary Cardona as they promote the student loan debt relief plans.
Sources: The Hill, The Epoch Times
