A U.S. appeals court blocked the Saving for a Valuable Education (SAVE) plan Tuesday.

The 8th U.S. Circuit Court of Appeals agreed with the states that argued former Presiden Joe Biden did not have the authority to design a repayment plan "where loans are largely forgiven rather than repaid."

The appeals court upheld a preliminary injunction on the repaymenꦇt plan, suspending its♍ implementation until the lawsuit is settled. The case will now be sent back to a lower court for the two parties to argue whether the plan itself is legal.

However, President Donald Trump and the Department of Education may choose not to defend the plan in court. 澳洲幸运5官方开奖结果体彩网:Trump's previous rhetoric toward Biden's repayment and forgiveness plans has been largely negative, and his administration has been working to 澳洲幸运5官方开奖结果体彩网:largely dismantle the Department of Education.

How Did We Get Here?

Borrowers enrolled in the SAVE plan have been 澳洲幸运5官方开奖结果体彩网:in forbearance since July. Two lawsuits temporarily blocked the repayment plan, which was supposed to provide cheaper payments and 💦an easier path to forgiveness for federal student loan borrowers.

The cases have gone back and forth in federal courts, 澳洲幸运5官方开奖结果体彩网:leaving many borrowers in limbo and forcing the Department of Education to 澳洲幸运5官方开奖结果体彩网:reopen older repayment plans.