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A federal appeals court has ruled against the Biden-Harris administration’s Saving on a Valuable Education (SAVE) Plan.
The 8th Circuit Court of Appeals decided to grant an emergency motion for an administrative stay to prohibit the administration from implementing the parts of the SAVE Plan not already blocked by lower court rulings.
U.S. Secretary of Education Dr. Miguel A. Cardona said the ruling could have devastating consequences for student loan borrowers face with unaffordable monthly payments.
“It’s shameful that politically motivated lawsuits waged by Republican elected officials are once again standing in the way of lower payments for millions of borrowers,” said Cardona.
“Borrowers enrolled in the SAVE Plan will be placed in an interest-free forbearance while our administration continues to vigorously defend the SAVE Plan in court,” he continued. “The department will be providing regular updates to borrowers affected by these rulings in the coming days.”