Economic news

US judges block parts of key Biden student debt plan

2024.06.24 18:24

(Reuters) – Two federal judges in Kansas and Missouri on Monday sided with several Republican-led states and partially blocked Democratic President Joe Biden’s administration from moving forward with a key student debt relief initiative.

© Reuters. FILE PHOTO: A sign calling for student loan debt relief is seen in front of the Supreme Court as the justices are scheduled to hear oral arguments in two cases involving President Joe Biden's bid to reinstate his plan to cancel billions of dollars in student debt in Washington, U.S., February 28, 2023. REUTERS/Nathan Howard/File Photo

U.S. District Judge Daniel Crabtree in Wichita, Kansas, blocked the U.S. Department of Education from proceeding with parts of a plan set to take effect July 1 designed to lower monthly payments and speed up loan forgiveness for millions of Americans.

He ruled shortly before U.S. District Judge John Ross in St. Louis, Missouri, issued a preliminary injunction barring the department from granting further loan forgiveness under the administration’s Saving on a Valuable Education (SAVE) Plan.



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