The Biden administration’s attempt to remake the federal student loan program has experienced a major setback. On Thursday, the U.S. Court of Appeals for the 8th Circuit blocked the SAVE plan, an income-driven repayment (IDR) plan that would have dramatically reduced the amount student loan borrowers were required to pay back before receiving forgiveness.
While a pair of federal judges struck down parts of the program in June, Thursday’s decision completely blocks the program.
In 2022, Biden announced a plan to forgive up to $20,000 in federal student loans for borrowers earning less than $125,000 and couples earning less than $250,000. However, the plan was swiftly blocked in federal court and eventually halted by the Supreme Court.
But even if Biden couldn’t enact blanket student loan forgiveness, many of his administration’s other changes to the federal student loan program went unchanged. These reforms—most notable…
