Thu Feb 20 17:00:00 UTC 2025: ## Appeals Court Blocks Biden’s Student Loan Relief Plan, Raising Costs for Borrowers
**Washington, D.C.** – A federal appeals court dealt a blow to millions of student loan borrowers Tuesday, blocking the Biden administration’s SAVE (Saving on a Valuable Education) plan. The 8th U.S. Circuit Court of Appeals sided with seven Republican-led states that challenged the plan’s legality, arguing that President Biden overstepped his authority.
SAVE, designed to lower monthly payments and accelerate debt forgiveness, was deemed too costly by opponents. The University of Pennsylvania’s Penn Wharton Budget Model estimated a potential $475 billion cost over ten years. Republicans argued against taxpayer subsidization of student loan payments, while consumer advocates countered that rising college costs necessitate more affordable repayment options. They cited research showing student loan debt hinders major life milestones like starting businesses and homeownership.
The court ruling comes as House Republicans are proposing further changes to student loan repayment that could increase monthly payments by nearly $200 for the average borrower, according to the Institute for College Access & Success. These proposals aim to fund President Trump’s tax cuts.
The impact on borrowers is significant. The blocked SAVE plan offered lower monthly payments and faster debt elimination than other federal programs. Its demise will likely result in substantially higher monthly payments for millions. CNBC is seeking input from borrowers affected by this decision. Contact annie.nova@nbcuni.com to share your experience.
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