Federal Court Blocks Nationwide Student Loan Forgiveness Plan

Federal courts continued to block the Biden administration's attempts at broad-based student loan forgiveness. After the Supreme Court struck down the original plan in Biden v. Nebraska (2023), finding the administration exceeded its authority under the HEROES Act, the Department of Education pursued alternative forgiveness pathways through regulatory action.

The administration proposed new rules under the Higher Education Act to provide relief for borrowers with ballooning interest, long repayment periods, or who attended institutions engaged in misconduct. Federal courts issued injunctions against these rules as well, finding the administration was attempting to circumvent the Supreme Court's decision.

Meanwhile, the SAVE repayment plan — which ties payments to income and provides forgiveness after 10-20 years — has also been partially blocked by courts. Over 8 million borrowers have been placed in forbearance during the litigation.