Federal appeals court blocks all of Biden's student loan debt handout plan

A federal appeals court on Thursday issued a ruling that blocks the Biden administration from continuing to implement a new version of its student loan debt handout plan that is designed to reduce monthly payments for borrowers.

The U.S. Eighth Circuit Court of Appeals granted a request by seven Republican states to block portions of the Education Department's plan that a lower court judge hadn't previously blocked.

Last month, a U.S. District Court in St. Louis blocked the agency from moving forward with granting additional student loan forgiveness under the Biden administration's Saving on a Valuable Education (SAVE) plan – though it didn't block all elements of the plan.

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This is a developing story. Please check back for updates.

Reuters contributed to this report.