(RestoreAmericanGlory.com) – Two courts have put on hold the Biden administration’s plan to reduce student loan payments, causing questions about how the halt will affect millions of Americans.
The two federal judges in Kansas and Missouri ruled against the plan. Judge Michael Crabtree in Kansas ruled that the Education Department is not allowed to enact the full Saving on a Valuable Education (SAVE) programs. As part of the program, those participants who have student loan debt would have seen their loan payments drop to 5 percent from 10 percent of their income. In his ruling, he noted that the department had not received Congressional approval for a part of the program.
The plan was challenged by 12 Republican states, led by Kansas Attorney General Kris Kobach (R). Earlier this month Crabtree ruled that eight of the states did not have the necessary standing to bring forward the challenge. The only three states allowed to bring forward the challenge are South Carolina, Texas, and Alaska.
Judge John Ross in Missouri, who is an Obama appointee, similarly made a ruling against a portion of SAVE, noting that the Department of Education did not have the authority to forgive loans. He also noted that forgiving illegally the federal loans were reducing state loan operators’ opportunity to make revenue.
The challenge in Missouri was brought forward by Missouri Attorney General Andrew Bailey (R) and five other challenges. This is the same argument that the Supreme Court had sided with against the original mass student loan forgiveness plan of President Joe Biden.
Bailey pointed out in a post on X that Congress had never given Biden the authority to leave American taxpayers to handle the half a trillion dollars of student loan debt.
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