When President Biden announced his plan to provide student debt relief for 43 million borrowers nearly two years ago, there was a piece to his program that attracted less attention: a new student loan repayment program that would cut monthly payments in half for millions.
The repayment program, called SAVE, was meant to become a permanent fixture of the federal student loan system, offering a more affordable path to repayment, particularly for lower-income borrowers.
But two groups of Republican-led states have filed separate lawsuits to block the SAVE program — including many of the states that challenged Mr. Biden’s $400 billion debt cancellation plan, which was struck down by the Supreme Court last year.
Missouri, along with six other states, filed suit on Tuesday in the U.S. District Court for the Eastern District of Missouri, seeking to upend the program.
Both suits argue that the administration has again exceeded its authority, and the repayment plan is just another backhanded attempt to wipe debts clean.
Persons:
Biden, Biden’s
Organizations:
Republican, Eastern, of
Locations:
Missouri, U.S, of Missouri, Kansas