Appeals court allows part of Biden student loan repayment plan to go forward

President Joe Biden speaks about student loan debt relief at Delaware State University in Dover, Del. A federal appeals court has allowed the US Education Department to move ahead with a plan to lower monthly payments for millions of student loans borrowers. (AP/File)
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Updated 02 July 2024
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Appeals court allows part of Biden student loan repayment plan to go forward

  • The ruling on Sunday means the department can move ahead with the reduced payments already calculated while it pursues an appeal

WASHINGTON: A federal appeals court has allowed the US Education Department to move ahead with a plan to lower monthly payments for millions of student loan borrowers, putting on hold a ruling last week by a lower court.
The ruling from the 10th US Circuit Court of Appeals puts back on track a central part of President Joe Biden’s efforts to address student debt — a rule that lowers from 10 percent of discretionary income to 5 percent the amount that some borrowers qualifying for a repayment plan need to pay.
The reduced payment threshold was set to take effect July 1, but federal judges in Kansas and Missouri last week blocked much of the administration’s student loan repayment plan in two separate rulings. The ruling on Sunday means the department can move ahead with the reduced payments already calculated while it pursues an appeal.
The rulings have created a difficult environment for borrowers to navigate, said Persis Yu, deputy executive director of the Student Borrower Protection Center, which advocates for eliminating student debt. The stay granted by the 10th Circuit is temporary, Yu said, leaving many borrowers in the dark about future financial obligations.
“Borrowers are having to make decisions right now about their financial lives, and they don’t know the very basic information that they need in order to make informed decisions,” Yu said.
The Biden administration created the SAVE plan last year to replace other existing income-based repayment plans offered by the federal government. It allowed many to qualify for lower payments, and forgiveness was granted to borrowers who had made payments for at least 10 years and originally borrowed $12,000 or less.
US Education Secretary Miguel Cardona said the Biden administrations remains committed “to our work to fix a broken student loan system and make college more affordable for more Americans.”
The appeals court ruling does not impact the injunction issued by a federal judge in Missouri, which prevents the Education Department from forgiving loan balances going forward.
The injunctions are the result of lawsuits from Republican-led states seeking to invalidate the Biden administration’s entire loan forgiveness program, which was first available to borrowers in the summer of 2023, and at least 150,000 have had their loans canceled. The suing states argued that the administration’s plan was a workaround after the Supreme Court struck down the original plan for student loan forgiveness earlier that year.


Pakistan combing for perpetrators after deadly separatist attacks

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Pakistan combing for perpetrators after deadly separatist attacks

  • Around a dozen sites where the attacks took place — including the provincial capital Quetta — remained sealed off
  • The Baloch Liberation Army, the province’s most active militant separatist group, claimed responsibility for the attacks
QUETTA, Pakistan: Pakistan forces were hunting on Sunday for the separatists behind a string of coordinated attacks in restive Balochistan province, with the government vowing to retaliate after more than 120 people were killed.
Around a dozen sites where the attacks took place — including the provincial capital Quetta — remained sealed off, with troops combing the area a day after militants stormed banks, jails and military installations, killing at least 18 civilians and 15 security personnel, according to the military’s count.
At least 92 militants were also killed, the military added, while an official said that a deputy district commissioner had been abducted.
Mobile Internet service across the province has been jammed for more than 24 hours, while road traffic is disrupted and train services suspended.
After being rocked by explosions, typically bustling Quetta lay quiet on Sunday, with major roads and businesses deserted, and people staying indoors out of fear.
Shattered metal fragments and mangled vehicles litter some roads.
“Anyone who leaves home has no certainty of returning safe and sound. There is constant fear over whether they will come back unharmed,” Hamdullah, a 39-year-old shopkeeper who goes by one name, said in Quetta.
The Pakistan military said it was conducting “sanitization operations” in the areas that had been targeted in Saturday’s attacks.
“The instigators, perpetrators, facilitators and abettors of these heinous and cowardly act... will be brought to justice,” it said in a statement Saturday night.
The Baloch Liberation Army (BLA), the province’s most active militant separatist group, claimed responsibility for the attacks in a statement sent to AFP.
The group said it had targeted military installations as well as police and civil administration officials in gun attacks and suicide bombings.
Saturday’s attacks came a day after the military said it killed 41 insurgents in two separate operations in the province.
Pakistan has been battling a Baloch separatist insurgency for decades, with frequent armed attacks on security forces, foreign nationals and non-local Pakistanis in the mineral-rich province bordering Afghanistan and Iran.
Pakistan’s poorest province despite an abundance of untapped natural resources, Balochistan lags behind the rest of the country in almost every index, including education, employment and economic development.
Baloch separatists have intensified attacks on Pakistanis from other provinces working in the region in recent years, as well as foreign energy firms that they believe are exploiting its riches.
The separatists attacked a train with 450 passengers on board last year, sparking a two-day siege during which dozens of people were killed.