US court allows part of Biden student debt relief plan to resume

July 1 (Reuters) - A U.S. appeals court allowed President Joe Biden's administration to move forward with implementing a key part of a new student debt relief plan designed to lower monthly payments for millions of Americans.

The Denver-based 10th U.S. Circuit Court of Appeals on Sunday put on holdNew Tab, opens new tab an injunction issued by a judge in Kansas last week at the urging of Republican-led states that argued the U.S. Department of Education's debt relief plan was unlawful.

The Education Department said that as a result of the stay issued by the 10th Circuit panel, it will continue cutting undergraduate loan payments and has directed loan servicers it contracts with to move forward with changes under the plan.

U.S. Secretary of Education Miguel Cardona in a statement said the court "sided with student loan borrowers across the country who stand to benefit from the SAVE Plan – the most affordable repayment plan in history."

The Saving on a Valuable Education Plan provides more generous terms than past income-based repayment plans, lo...
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