Biden Gets Rare Victory

( – Amid sagging poll ratings in key battleground states, a federal appellate court awarded Joe Biden a rare victory ahead of the presidential election.

The court recently ruled that a crucial component of Joe Biden’s student loan giveaway, known as the Saving on a Valuable Education (Save) plan, can proceed.

This development means that millions of loan holders might see their monthly payments reduced by half, though it does not fully erase their debts.

This decision comes after the U.S. Supreme Court last year dismissed Biden’s larger proposal to cancel up to $20,000 per borrower for those earning under $125,000 individually or $250,000 for married couples filing jointly.

The Save plan, which replaces the earlier proposal, sets payments based on a smaller portion of a borrower’s adjusted gross income, allowing for lower monthly dues.

The journey through the courts has been rocky, with the plan facing temporary blocks by federal judges in Kansas and Missouri just last week, which halted anticipated payment reductions that were set to start on July 1.

However, with the latest decision from a three-judge panel in Denver’s 10th Circuit court, the administration can now lower monthly payments from 10% of a borrower’s discretionary income to 5%.

Education Secretary Miguel Cardona commented on the ruling, saying, “The US court of appeals for the 10th circuit sided with student loan borrowers across the country who stand to benefit from the Save Plan.”

Cardona further noted that borrowers under Save will see their undergraduate loan payments halved and will receive protection against interest accrual if they make their monthly payments.

While borrowers were placed in forbearance for July due to ongoing legal disputes, the Education Department expects them to resume making reduced payments starting in August.

18 Republican-led states have contested the implementation of the Save plan in two separate lawsuits, arguing that the Biden administration exceeded its authority by unilaterally reducing loan amounts.

Despite the favorable ruling, the legal battle is not over. The administration awaits an appeal decision regarding a Missouri federal judge’s ruling that while monthly payments can be reduced, loans cannot be entirely forgiven.

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