Millions of student loan borrowers enrolled in the Saving on a Valuable Education (SAVE) plan have their forgiveness in limbo after federal judges blocked the program on Friday, marking the latest in a series of court battles against President Joe Biden’s student loan cancellation efforts.
The Eighth Circuit of Appeals’ preliminary injunction comes just weeks after a separate federal court issued a stay on the income-driven repayment plan. Under SAVE, borrowers with a principal balance of $12,000 or less in loans and who made 10 years of monthly payments were set to receive loan forgiveness, while people who owed more than that would see similar relief after 20-25 years. The program was also dubbed the most “affordable student loan repayment plan,” with payment plans based on income and family size as low as $0 a month.
The ruling, made by Republican-appointed judges, says that borrowers who already received forgiveness…
