Two courts on Monday issued injunctions against key elements of the Biden administration's new student loan repayment plan.
Two courts on Monday issued temporary injunctions against the Biden administration's flagship student loan repayment plan, decisions that experts say are likely to create new hurdles and uncertainties for millions of borrowers. The rulings take aim at the Saving on a Valuable Education, or
plan was challenged by several Republican-led states that argued the plan overstepped the Biden administration's authority. They also claimed it could lead to financial harm due to lost revenue because it offers loan forgiveness in fewer years than earlier plans. On Monday, judges in Kansas and Missouri ruled partially in favor of those arguments, halting some aspects of the
plan following this week's legal setback.What did the courts decide? In a ruling from Kansas, U.S. District Judge Daniel D. Crabtree placed an injunction on the next phase of the plan?Yes, according to the Department of Education.'While we are assessing the rulings, borrowers can still enroll in the
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