President Joe Biden’s push to provide student loan relief suffered a big blow as federal judges halted much of the administration’s repayment program, a legal victory cheered by Georgia Attorney General Chris Carr.
Judges in Kansas and Missouri issued orders Monday in two federal lawsuits that together bar the U.S. Department of Education from moving forward with major portions of its Saving on a Valuable Education, or SAVE, program. Georgia is one of seven states that signed on to a federal lawsuit filed in April in U.S. District Court in Missouri against the department. That suit is one of two federal complaints brought by Republican-led states that challenge the SAVE plan.
Monday’s orders in the two cases bar the department from lowering the monthly repayment amount for some borrowers with larger loans and also from forgiving loans going forward. The decisions do not cancel assistance already provided to borrowers.
Opponents have criticized the program as a costly overreach of authority and have pointed out the timing of the SAVE plan rollout in the months leading up to the presidential election.
Carr, in a message posted on X, celebrated the temporary orders, which remain in effect until the cases reach final court resolutions.
“In response to our lawsuit, a judge has blocked President Biden’s unlawful student loan plan. Hardworking Georgians shouldn’t be on the hook for other people’s debt. It’s financially irresponsible, fundamentally unfair & more election-year politics from this administration,” said Carr’s message.
The Education Department did not immediately provide the number of Georgians currently enrolled in the SAVE program, which launched in August as a way to provide an income-based student loan repayment program with lower monthly payments and to offer early loan forgiveness for eligible borrowers. Biden’s earlier attempt to provide widespread student loan forgiveness was blocked last June by the U.S. Supreme Court in a 6-3 decision.
The White House blasted this week’s legal blocks to the SAVE plan, saying it “strongly” disagrees with the rulings and pledging that the administration “will continue to vigorously defend” the program. The program has helped 8 million borrowers receive lower monthly payments and wiped out debt more quickly for hundreds of thousands of people nationwide, the administration said.
“It’s unfortunate that Republican elected officials and their allies have fought tooth and nail to prevent their constituents from accessing lower payments and a faster path to debt forgiveness — and that courts are now rejecting authority that the Department has applied repeatedly for decades to improve income-driven repayment plans,” White House Press Secretary Karine Jean-Pierre said in a statement.
The Associated Press contributed to this article.
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