Biden's Student Loan Forgiveness Plan to Proceed Amid Legal Battles, Federal Appeals Court Rules

A federal appeals court has allowed President Biden's student loan relief initiative, the SAVE plan, to continue while legal challenges are addressed. Under SAVE, many borrowers pay 5% of their discretionary income towards loans each month instead of the previous 10% or more, and those earning under $32,800 have $0 monthly payments. An injunction against the student debt forgiveness part of SAVE from a Missouri court remains in place. Republican-led states sued the administration, arguing the plan exceeded its authority and was trying to circumvent the Supreme Court blocking broad student debt cancellation.