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Federal loan repayment plan partially blocked by courts

A pair of national lawsuits, one involving Montana AG Austin Knudsen, have halted part of President Biden’s plan to combat student debt.

A pair of federal court injunctions have frozen elements of a student loan repayment plan scheduled to roll out next week, with one of the rulings arising from a lawsuit filed by Montana Attorney General Austin Knudsen and Republican attorneys general in 10 other states.

The injunctions, issued Monday evening by federal judges in Kansas and Missouri, temporarily block the final phase of President Joe Biden’s Saving on Valuable Education (SAVE) plan set to go into effect July 1. That final phase included lowering the cap on monthly student loan repayments based on a borrower’s discretionary inc...

 

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