The Save plan – a means-tested program – was blocked from further implementation by Republican-appointed judges
A federal appeals court has sided with Republican-controlled states to deliver another setback to Joe Biden’s student loan relief plan designed to reduce monthly payments for millions of lower-income graduates and speed up debt forgiveness for some borrowers.
A unanimous, unsigned ruling issued on Friday by three Republican-appointed judges in Missouri blocked further implementation of the Saving on a Valuable Education (Save) plan – the Department of Education’s means-tested debt relief program that is being challenged by seven Republican-led states.
If I remember correctly, it’s the fact that these loans are held by companies who pay state tax. If the loans are paid out by the federal government, the states’ future tax revenues will be diminished.