Skip to Content Facebook Feature Image

Federal appeals court blocks remainder of Biden's student debt relief plan

News

Federal appeals court blocks remainder of Biden's student debt relief plan
News

News

Federal appeals court blocks remainder of Biden's student debt relief plan

2024-07-19 03:58 Last Updated At:04:02

WASHINGTON (AP) — A federal appeals court blocked the implementation of the Biden administration's student debt relief plan, which would have lowered monthly payments for millions of borrowers.

In a ruling Thursday, the 8th Circuit Court of Appeals granted a motion for an administrative stay filed by a group of Republican-led states seeking to invalidate the administration's entire student loan forgiveness program. The court's order prohibits the administration from implementing the parts of the SAVE plan that were not already blocked by lower court rulings.

The ruling comes the same day that the Biden administration announced another round of student loan forgiveness, this time totaling $1.2 billion in forgiveness for roughly 35,000 borrowers who are eligible for the Public Service Loan Forgiveness program.

The PSLF program, which provides relief for teachers, nurses, firefighters and other public servants who make 120 qualifying monthly payments, was originally passed in 2007. But for years, borrowers ran into strict rules and servicer errors that prevented them from having their debt cancelled. The Biden administration adjusted some of the programs rules and retroactively gave many borrowers credits towards their required payments.

Two separate legal challenges to Biden's SAVE plan have worked their way through the courts. In June, federal judges in Kansas and Missouri issued separate rulings that blocked much of the administration's plan to provide a faster path towards loan cancellation and reduce monthly income-based repayment from 10% to 5% of a borrower's discretionary income. Those injunctions did not affect debt that had already been forgiven.

The 10th Circuit Court of Appeals issued a ruling that allowed the department to proceed with the lowered monthly payments. Thursday's order from the 8th circuit blocks all aspects of the SAVE plan.

The Education Department said it was reviewing the ruling. “Our Administration will continue to aggressively defend the SAVE Plan — which has been helping over 8 million borrowers access lower monthly payments, including 4.5 million borrowers who have had a zero dollar payment each month,” the administration said. "And, we won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments.”

The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

FILE - President Joe Biden speaks about student loan debt, April 8, 2024, in Madison, Wis. A federal appeals court has blocked the implementation of the Biden administration's student debt relief plan, which would have lowered monthly payments for millions of borrowers. In a ruling Thursday, July 18, the 8th Circuit Court of Appeals granted a request by a group of Republican-led states seeking to invalidate the administration's entire loan forgiveness program. (AP Photo/Evan Vucci, File)

FILE - President Joe Biden speaks about student loan debt, April 8, 2024, in Madison, Wis. A federal appeals court has blocked the implementation of the Biden administration's student debt relief plan, which would have lowered monthly payments for millions of borrowers. In a ruling Thursday, July 18, the 8th Circuit Court of Appeals granted a request by a group of Republican-led states seeking to invalidate the administration's entire loan forgiveness program. (AP Photo/Evan Vucci, File)

SALT LAKE CITY (AP) — Utah captain Clayton Keller went to the locker room a minute into the second period against the Winnipeg Jets on Tuesday night after a puck struck him the face.

A shot from teammate Michael Kesselring got deflected high and the puck struck Keller. He immediately ripped off his helmet, skated off the ice, and headed straight to the locker room.

Keller eventually returned to the ice with 4:40 left in the second with swelling and a cut above his eye. He assisted on Utah's first goal of the game 40 seconds later and added an empty-netter late in the 5-2 win over the Jets.

“I got lucky,” said Keller, who sported a dozen stitches and a bruised eyelid following the game. “It didn’t catch my eye. It was so fast, you don’t feel much. But I tried to look through my eye and I knew I could, so I wasn’t really too worried after that.”

His quick return and toughness shifted momentum in Utah’s favor and led to a second straight home victory to cap a seven-game homestand.

“Coming back without hesitation, without a doubt in his head -- that was great,” Utah coach Andre Tourigny said.

Keller has 10 goals and 20 assists over his last 22 games. He had a goal and three assists in Utah’s 4-2 win over St. Louis on Saturday, matching his NHL career high with four points. Keller leads the expansion club in points (50) and assists (34) this season.

AP NHL: https://apnews.com/hub/nhl

Utah Hockey Club center Clayton Keller (9) moves the puck against the Winnipeg Jets during the first period of an NHL hockey game Monday, Jan. 20, 2025, in Salt Lake City. (AP Photo/Melissa Majchrzak)

Utah Hockey Club center Clayton Keller (9) moves the puck against the Winnipeg Jets during the first period of an NHL hockey game Monday, Jan. 20, 2025, in Salt Lake City. (AP Photo/Melissa Majchrzak)

Recommended Articles
Hot · Posts