TWO FEDERAL JUDGES HAS PUT KEY PARTS OF PRESIDENT BIDEN'S PLANS FOR EASING STUDENT LOAN PAYMENTS ON HOLD, AND THEIR FUTURE IN DOUBT.

WILLIAM BRANGHAM HAS THE DETAILS ON THE IMPACT.

IT'S THE FIRST OF A TWO-PART FOCUS TONIGHT OF OUR SERIES, RETHINKING COLLEGE.

WILLIAM: GEOFF, JUDGES IN KANSAS AND MISSOURI BLOCKED PARTS OF THE BIDEN ADMINISTRATION'S STUDENT LOAN REPAYMENT PLAN KNOWN AS S.A.V.E.

IT OFFERS A WAY FOR STUDENTS AND GRADUATES TO LOWER MONTHLY PAYMENTS AND GET SOME DEBT FORGIVENESS.

MORE THAN EIGHT MILLION PEOPLE ARE CURRENTLY ENROLLED, BUT THESE RULINGS PUT THOSE KEY FEATURES ON PAUSE.

SO WHAT DOES THIS MEAN FOR THOSE BORROWERS?

DANIELLE DOUGLAS-GABRIEL COVERS HIGHER EDUCATION FOR THE WASHINGTON POST AND JOINS US AGAIN NOW.

THANK YOU SO MUCH.

BEFORE WE GET INTO THE ARGUMENTS EMBEDDED IN THESE CASES, CAN YOU REMIND US WHAT THE PRESIDENT AND THE ADMINISTRATION'S STUDENT LOAN REPAYMENT PROGRAM WAS ALL ABOUT.

WHO WAS THE ADMINISTRATION TRYING TO HELP?

DANIELLE: THANKS FOR HAVING ME.

THE OBJECTIVE WAS TO TRY AND MAKE STUDENT LOAN PAYMENTS MORE MANAGEABLE FOR THE VAST MAJORITY OF AMERICANS WHO HAVE EDUCATION DEBT.

THE WAY THIS WOULD WORK IS PROTECTING MORE OF THE INCOME THAT THEY EARN FROM THE CALCULATION THAT DETERMINES THEIR MONTHLY BILLS.

THIS IS REALLY BUILT ON A PLAN THAT HAS BEEN IN EXISTENCE FOR 30 YEARS IN ONE ITERATION OR THE NEXT.

AND IT JUST MAKES IT FAR MORE GENEROUS THAN WHAT WE HAVE SEEN IN THE PAST BY MAKING SURE THAT PEOPLE WOULD NOT BE SADDLED WITH UNAFFORDABLE LOAN PAYMENTS WHILE THEY ARE TRYING TO AFFORD THEIR MORTGAGES OR RENT OR CAR PAYMENT.

HOWEVER, THE GENEROSITY OF THIS PLAN IS WHAT IT ISSUE AND WHETHER OR NOT THE BIDEN ADMINISTRATION HAS LEGAL AUTHORITY TO MAKE SUCH SWEEPING ECONOMIC CHANGES WITHOUT CONGRESSIONAL APPROVAL.

WILLIAM: WHAT WAS THE ADMINISTRATION'S ARGUMENT FOR WHY PEOPLE WHO HAD KNOWINGLY TAKEN ON DEBT SHOULD GET THIS FORGIVENESS OR A REDUCTION IN THEIR PAYMENTS?

DANIELLE: HONESTLY, THIS PLAN IN ONE ITERATION OR THE NEXT HAS EXISTED SINCE 1993, AND THE IDEA WAS ALWAYS LET'S MAKE SURE PEOPLE ARE NOT DROWNING IN STUDENT LOANS AS THEY ARE TRYING TO MAKE A LIFE FOR THEMSELVES.

BUT THE DIFFERENCE HERE IS THE AMOUNT OF LOAN FORGIVENESS AND THE FAST PATH TOWARDS LOAN FORGIVENESS THAT THIS PLAN OFFERED COMPARED TO SOME OF THE OLDER PLANS UNDER THE SUITE OF INCOME DRIVEN REPAYMENT PLANS.

WILLIAM: THESE TWO SUITS WERE BROUGHT BY A CONSORTIUM OF REPUBLICAN ATTORNEYS GENERAL IN DIFFERENT STATES AND RULED ON BY TWO JUDGES APPOINTED BY FORMER PRESIDENT OBAMA.

WHAT WERE THEY ARGUING ABOUT WHAT IS ILLEGAL HERE?

DANIELLE: BOTH OF THE JUDGES STARTED TO QUESTION WHETHER THE HIGHER EDUCATION ACT, WHICH OF SAVE PLAN IS ROOTED IN, REALLY AFFORDED THE ADMINISTRATION TO MAKE SUCH SWEEPING CHANGES WITHOUT CONGRESSIONAL APPROVAL.

THEY BELIEVE THAT BOTH OF THESE CASES HAVE ENOUGH MERIT TO MOVE FORWARD BOTH JUDGES ALSO QUESTIONED ONCE ALL OF THESE LOANS ARE FORGIVEN, WHETHER THERE IS THE POTENTIAL FOR STATES TO MISS OUT ON A LOT OF REVENUE.

KEEP IN MIND THAT BECAUSE OF A LAW THAT WAS PASSED DURING THE PANDEMIC, PEOPLE HAD THEIR STUDENT LOANS FORGIVEN ANYTIME BEFORE DECEMBER 2025 DON'T HAVE TO PAY STATE AND FEDERAL TAXES ON IT.

THE STATES SAID WE ARE GOING TO MISS OUT ON POTENTIAL TAX REVENUE IF THIS PLAN CONTINUES ON.

BUT THE EDUCATION DEPARTMENT AND THE BIDEN ADMINISTRATION HAS SAID THERE ARE A LOT OF OTHER STUDENT LOAN REPAYMENT PLANS THAT ARE CURRENTLY IN PLAY AND CREATING THE SAME KIND OF POTENTIAL HARM, AND WHY ARE YOU NOT GOING AFTER THOSE?

WILLIAM: WITH THESE TWO RULINGS, WHAT DOES THIS MEAN FOR THE 8 MILLION-PLUS PEOPLE WHO ARE CURRENTLY IN THAT PLAN?

WHAT HAPPENS TO THEM NOW?

DO THEIR PAYMENTS SUDDENLY START TO GO UP?

WHAT DOES THE FUTURE LOOK LIKE FOR THEM?

DANIELLE: YOU ARE RIGHT, ABOUT 8 MILLION PEOPLE ARE PART OF THE SAFE PLAN FOR RIGHT NOW.

THEIR PAYMENT STRUCTURE WILL STAY THE SAME.

THE CHALLENGE IS THE FINAL PIECE OF THE PLAN THAT WAS SUPPOSED TO TAKE EFFECT JULY 1 WAS GOING TO CUT THOSE PAYMENTS IN HALF.

IT WAS GOING TO LOWER IT EVEN FURTHER.

THEY WILL NOT BE ABLE TO TAKE ADVANTAGE OF THAT.

THEY WILL ALSO NOT BE ABLE TO TAKE ADVANTAGE OF THE LOAN FORGIVENESS PORTION OF THE PLAN.

THE PROGRAM CREATES A FASTER PATH TO FORGIVENESS BY SAYING IF YOU BORROWED LESS THAN $12,000 ORIGINALLY AND YOU HAVE BEEN IN REPAYMENT FOR 10 YEARS, THEN WE CAN FORGIVE YOUR REMAINING BALANCE.

400,000 PEOPLE HAVE BENEFITED FROM THAT PLAN SINCE FEBRUARY.

BUT THAT PORTION HAS NOW COME TO A HALT.

ANYONE WHO IS IN THE QUEUE FOR THAT KIND OF FORGIVENESS WILL NOT BE RECEIVING IT, AS LONG AS THIS CASE GOES ON, AND UNTIL IT IS RESOLVED.

WILLIAM: SEPARATE FROM THE LEGAL ARGUMENTS HERE, HOW BIG A BLOW IS THIS POLITICALLY FOR THE BIDEN ADMINISTRATION, WHICH HAS BEEN TRYING TO MAKE A LOT OF EFFORTS TO YOUNGER VOTERS TO SAY LOOK, WE ARE DOING THESE SUBSTANTIVE THINGS FOR YOU?

THIS NOW HAS A MAJOR ROADBLOCK.

DANIELLE: CERTAINLY THESE DECISIONS UNDERMINE THE BIDEN ADMINISTRATION'S EFFORTS TO REALLY STAKE OUT A CLAIM AS THE PRESIDENT WHO HAS DELIVERED THE MOST STUDENT LOAN FORGIVENESS, AND HAS BEEN THE MOST GENEROUS AND ADVANTAGEOUS TOWARDS BORROWERS.

THERE ARE STILL MILLIONS OF PEOPLE WHO HAVE BENEFITED FROM BIDENS SUITE OF LOAN FORGIVENESS PLANS AND POLICIES, AND I IMAGINE THEY WILL STILL CONTINUE TO DO SO UNDER ALL THE POLICIES STILL IN PLAY.

BUT IN THIS PARTICULAR PLAN THAT REALLY WAS A CORNERSTONE OF WHAT THE PRESIDENT WAS TRYING TO DO FOR BORROWERS, AND CREATE A LEGACY OF TRYING TO BE MORE GENEROUS AND UNDERSTANDING WITH PEOPLE WHO HAVE BEEN SETTLED WITH EDUCATION LOANS, THIS REALLY WAS A HIT.

BUT LOOK, THE CASES ARE STILL GOING.

WE DON'T KNOW WHAT THE OUTCOME IS.

BUT THE TWO INJUNCTIONS CERTAINLY DO SIGNAL THAT THE COURT IS WILLING TO ENTERTAIN THESE ARGUMENTS AND COULD ULTIMATELY THE STATES COULD PREVAIL.

WILLIAM: DANIELLE DOUGLAS-GABRIEL OF THE WASHINGTON POST, THANK YOU SO MUCH FOR BEING HERE AGAIN.

DANIELLE: THANKS FOR HAVING ME.

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