8th Circuit blocks Biden student loan bailout.

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A U.S. appeals court filed an order on Thursday barring President Biden’s administration from providing student debt relief with its SAVE Plan.

Why it matters: Although the order on an emergency motion is not a final ruling, all aspects of the SAVE Plan are now blocked while the court case continues, per the Court of Appeals for the Eighth Circuit.

  • Lower court rulings had already hindered other parts of the SAVE Plan.
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Context: The Republican-led states of Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma sued Biden and his administration for “trying to impose an extraordinarily expensive and controversial policy,” per an April complaint.

  • Biden’s income-driven repayment plan launched in August as payments were set to resume after a years-long pandemic pause.
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Zoom out: Two federal judges in Kansas and Missouri temporarily halted parts of SAVE in June, CNBC reported.

https://www.axios.com/2024/07/18/court-blocks-save-plan-student-debt-relief