Two federal judges in Missouri and Kansas have suspended sections of a Biden administration initiative aimed at reducing student loan payments, raising questions for the millions of Americans affected by the program.
In Kansas, Judge Michael Crabtree ruled that the Department of Education cannot approve the entire scope of the Saving on a Valuable Education (SAVE) program. Program participants with undergraduate student loan debt should see their payments halved next month, from 10% to 5% of their income, 225% above the poverty line.
Crabtree, an Obama appointee, said the department did not get explicit authority from Congress for that part of the program.
That challenge was led by Kansas Attorney General Kris Kobach (R) and joined by 11 other Republican states. Crabtree ruled earlier this month that eight of the 12 states did not have standing in the case, leaving only Alaska, Texas and South Carolina.
In Missouri, Judge John Ross – also an Obama appointee – ruled that the Department of Education cannot forgive any loans under SAVE, concluding that forgiving federal loans illegally deprives state loan operators of revenue.
Five other states joined Missouri Attorney General Andrew Bailey’s (R) challenge. The argument is the same one the Supreme Court supported in ruling against President Biden’s initial attempt at mass student loan forgiveness.
“Congress never gave Biden the authority to saddle American workers with half a trillion dollars in other people’s debts. A great victory for the Constitution,” Bailey wrote in a social media post on X.
Ross also noted that SAVE may be too broad to fit within its congressional mandate, leaving the door open for future challenges over the legality of the entire program.
SAVE has canceled more than $5.5 billion in debt for more than 400,000 borrowers since its creation, as Biden sought to bypass the Supreme Court’s block on his most sizable forgiveness plan. More than 8 million people signed up.
The program is Biden’s marquee student loan forgiveness policy, although it is separate from efforts to cancel debts for public sector workers and those defrauded by for-profit schools.
SAVE will continue to operate while the two lawsuits continue to be litigated, although Monday’s decision effectively freezes the extension of the program and halts all future loan forgiveness.
The Hill has reached out to the Department of Education for comment.
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