A pair of federal judges on Monday halted key parts of President Joe Biden’s new student loan repayment program, imperiling the administration’s plan to lower monthly payments and erase student debt for millions of Americans ahead of the November election.
The two court rulings, in response to lawsuits filed by Republican-led states, prohibit the Education Department from moving ahead with major provisions of Biden’s SAVE loan repayment program. The decisions prevent the Biden administration from further reducing the monthly payments of millions of borrowers as planned in July or canceling more debt under the program.