Two Red State Federal judges have issued stop orders….
In Kansas, U.S. District Judge Daniel D. Crabtree blocked the Biden administration from launching the final component of the Saving on a Valuable Education program, commonly known as Save. Borrowers with undergraduate debt were set to see their payments cut in half in July — from 10 percent to 5 percent of income above 225 percent of the federal poverty line. Borrowers who also have graduate loans would have had their payments lowered by the weighted average between 5 percent and 10 percent….
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The coalition of 11 Republican-led states, headed by Kansas Attorney General Kris Kobach, alleged in their lawsuit that the president overstepped his authority in creating the repayment program — claims that mirror the case that last year toppled Biden’s initial effort to forgive up to $20,000 in federal student loans. The states say Biden’s new repayment plan is an attempt to sidestep a Supreme Court ruling that struck down his debt forgiveness program….
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“Today two different gangs of right-wing attorneys general got exactly what they were looking for from federal judges in Kansas and Missouri: a recipe for chaos across the student loan system,” said Mike Pierce, executive director of the Student Borrower Protection Center, an advocacy group. “Millions of borrowers are now in limbo as they struggle to make sense of their rights under the law and the information being provided by the government and their student loan companies.”…
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Attorneys for the Biden administration say that argument is far too speculative to have merit. The Education Department has pointed out that Save represents the fourth time the Education Department has used the 1993 authority to expand income-driven options, giving the program solid legal footing…..