The US court has overruled the motion to halt the Biden student loan relief, which would see defaulters who owe $10,000 and less for the past 10yrs to become debt-free.
The Judge, Crabtree, in ruling in favor of state attorneys general from South Carolina, Texas and Alaska challenging the plan, had limited the scope of his decision, enjoining only aspects of the SAVE plan not already in effect.
However, the U.S. District Judge Daniel Crabtree in Wichita, Kansas, on June 24 had concluded that the Higher Education Act of 1965 did not clearly authorize the type of "unprecedented and dramatic expansion" of income-based repayment plans envisioned.
That work would take months, and in the interim many borrowers enrolled in the SAVE plan would need to be placed into forbearance until their loans could be serviced with a correct calculation of payments due, the U.S. Department of Justice argued on the administration's behalf.