Legal Battle Over Biden's SAVE Student Loan Repayment Plan

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President Biden's student debt relief program, SAVE, aims to halve monthly payments for millions, becoming a key aspect of the federal student loan system.

Debt relief program

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The SAVE plan is designed to aid lower-income borrowers by linking their monthly payments to income and household size.

SAVE plan

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Two groups of Republican-led states have filed lawsuits against the SAVE program, claiming that the administration has exceeded its authority.

against the SAVE program

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Missouri and six other states, following a group of 11 states led by Kansas, have initiated legal challenges to block the SAVE plan.

11 states led by Kansas

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Plaintiffs argue that SAVE is an unauthorized attempt by the President to enact significant policy changes without Congressional approval.

unauthorized attempt

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Over eight million borrowers have enrolled in SAVE since its introduction in August, with 360,000 already approved for debt cancellation.

debt cancellation

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The legal challenges arrive amid renewed efforts by the Biden administration to fulfill debt relief campaign promises

legal challenges

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Unlike previous plans struck down by the Supreme Court, SAVE is based on income-driven repayment authority granted by Congress in 1993.

Struck down by the Supreme Court

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Legal experts believe SAVE stands on firmer legal ground than past blocked plans, but the shifting legal landscape still poses uncertainties.

Legal experts

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Blocking the SAVE plan could severely disrupt the financial stability of millions of borrowers and complicate operations for loan servicers.

Blocking the SAVE plan

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