A federal appellate court has blocked key provisions of former President Joe Biden’s student debt relief initiative, ruling that the Department of Education overstepped its legal authority in implementing broad loan forgiveness through its income-contingent repayment (ICR) plan.
The U.S. Court of Appeals for the Eighth Circuit issued the decision on Feb. 18, affirming a lower court’s preliminary injunction against the Saving on a Valuable Education (SAVE) Plan. The program is designed to lower monthly payments and accelerate forgiveness for some borrowers.
The ruling is in response to a lawsuit filed by seven states—Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio, and Oklahoma—challenging the legality of the Biden administration’s student loan forgiveness program….