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Federal appeals court blocks remainder of Biden's student debt relief plan

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Federal appeals court blocks remainder of Biden's student debt relief plan
News

News

Federal appeals court blocks remainder of Biden's student debt relief plan

2024-07-19 03:58 Last Updated At:04:02

WASHINGTON (AP) — A federal appeals court blocked the implementation of the Biden administration's student debt relief plan, which would have lowered monthly payments for millions of borrowers.

In a ruling Thursday, the 8th Circuit Court of Appeals granted a motion for an administrative stay filed by a group of Republican-led states seeking to invalidate the administration's entire student loan forgiveness program. The court's order prohibits the administration from implementing the parts of the SAVE plan that were not already blocked by lower court rulings.

The ruling comes the same day that the Biden administration announced another round of student loan forgiveness, this time totaling $1.2 billion in forgiveness for roughly 35,000 borrowers who are eligible for the Public Service Loan Forgiveness program.

The PSLF program, which provides relief for teachers, nurses, firefighters and other public servants who make 120 qualifying monthly payments, was originally passed in 2007. But for years, borrowers ran into strict rules and servicer errors that prevented them from having their debt cancelled. The Biden administration adjusted some of the programs rules and retroactively gave many borrowers credits towards their required payments.

Two separate legal challenges to Biden's SAVE plan have worked their way through the courts. In June, federal judges in Kansas and Missouri issued separate rulings that blocked much of the administration's plan to provide a faster path towards loan cancellation and reduce monthly income-based repayment from 10% to 5% of a borrower's discretionary income. Those injunctions did not affect debt that had already been forgiven.

The 10th Circuit Court of Appeals issued a ruling that allowed the department to proceed with the lowered monthly payments. Thursday's order from the 8th circuit blocks all aspects of the SAVE plan.

The Education Department said it was reviewing the ruling. “Our Administration will continue to aggressively defend the SAVE Plan — which has been helping over 8 million borrowers access lower monthly payments, including 4.5 million borrowers who have had a zero dollar payment each month,” the administration said. "And, we won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments.”

The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

FILE - President Joe Biden speaks about student loan debt, April 8, 2024, in Madison, Wis. A federal appeals court has blocked the implementation of the Biden administration's student debt relief plan, which would have lowered monthly payments for millions of borrowers. In a ruling Thursday, July 18, the 8th Circuit Court of Appeals granted a request by a group of Republican-led states seeking to invalidate the administration's entire loan forgiveness program. (AP Photo/Evan Vucci, File)

FILE - President Joe Biden speaks about student loan debt, April 8, 2024, in Madison, Wis. A federal appeals court has blocked the implementation of the Biden administration's student debt relief plan, which would have lowered monthly payments for millions of borrowers. In a ruling Thursday, July 18, the 8th Circuit Court of Appeals granted a request by a group of Republican-led states seeking to invalidate the administration's entire loan forgiveness program. (AP Photo/Evan Vucci, File)

DARLINGTON, S.C. (AP) — Denny Hamlin took the lead coming out of the pits before a final overtime finish and held off William Byron to win the Goodyear 400 at Darlington Raceway on Sunday.

Hamlin won for a second straight week after his success at Martinsville and for the fifth time overall at Darlington, the most of any current driver.

Hamlin chose the outside lane for a final restart and shot out to the lead and pulled away from series points leader Byron and NASCAR wins leader Christopher Bell.

Hamlin looked like he'd have a strong finish, but not a winning one as Ryan Blaney passed Tyler Reddick for the lead with three laps left. But moments later, Kyle Larson spun out forcing a final caution and the extra laps.

It was then time for Hamlin's Joe Gibbs Racing pit crew to shine as it got him out quickly and in the lead.

Byron, who led the first 243 laps, was second with Hamlin's JGR teammate Bell in third.

“There are two people I really love right now, my pit crew and Kyle Larson,” Hamlin said to a round of boos from those in the stands.

Reddick was fourth and Blaney was fifth.

Kyle Larson, who won the Southern 500 here in 2023, had high hopes for a second Darlington win. But he slid into the inside wall coming off the second turn on lap three and went right to garage where his team worked the next couple of hours to get him back on track. Larson returned on lap 164 after falling 161 laps off the pace. Larson finished next to last in 37th.

Greg Biffle, the last NASCAR driver to win consecutive Cup Series victories at Darlington in 2006 and 2007, drove the pace car for the Goodyear 400 on Sunday. Biffle has had an eventful few months, flying rescue missions with his helicopter into areas of the Southeast affected by devastating Hurricane Helene in September.

Biffle was planning a weeklong trip to the Bahamas when his phone started going off about people stranded in parts of Western North Carolina.

“I went to the hangar and the power was out,” Biffle said. “We got the hangar down open with the tug and got the helicopter out. Once I got in the air, I realized what had taken place."

Biffle then flew the next 11 days from “sunup to sundown."

“It was incredible,” Biffle said. “It was pretty tough going for the first week.”

Biffle won the Myers Brothers Humanitarian Award for his work.

The series goes to Bristol on April 13 before taking its traditional Easter break.

AP NASCAR: https://apnews.com/hub/nascar-racing

Former driver Greg Biffle poses with the pace car before the start of a NASCAR Cup Series auto race at Darlington Raceway, Sunday, April 6, 2025, in Darlington, S.C. (AP Photo/Scott Kinser)

Former driver Greg Biffle poses with the pace car before the start of a NASCAR Cup Series auto race at Darlington Raceway, Sunday, April 6, 2025, in Darlington, S.C. (AP Photo/Scott Kinser)

NASCAR crew chief Matt Kelley walks out to pit road before the Goodyear 400, Sunday, April 6, 2025, in Darlington, S.C. (AP Photo/Scott Kinser)

NASCAR crew chief Matt Kelley walks out to pit road before the Goodyear 400, Sunday, April 6, 2025, in Darlington, S.C. (AP Photo/Scott Kinser)

Fans sign the start/finish line at before a NASCAR Cup Series auto race at Darlington Raceway, Sunday, April 6, 2025, in Darlington, S.C. (AP Photo/Scott Kinser)

Fans sign the start/finish line at before a NASCAR Cup Series auto race at Darlington Raceway, Sunday, April 6, 2025, in Darlington, S.C. (AP Photo/Scott Kinser)

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