U.S. court rules in favor of Biden's student loan repayment plan

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Transcript:

CONWAY GITTENS: I'm Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.

Wobbly is the best way to describe how Wall Street kicked off the second half of the trading year. Mixed signs from the factory floor gave investors reasons to be both worried and hopeful. Manufacturing activity shrank for the third straight month, according to the Institute for Supply Management. However, prices paid, a measure of inflation, hit a six-month low in June and new orders rebounded from a two-year low.

In other news, some student loan borrowers may be able to breathe a sigh of relief - at least for now. A federal appeals court has given the go-ahead to a White House debt relief plan, overturning a lower court’s injunction.

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The 10th Circuit of Appeal’s ruling allows part of the Biden White House’s ‘Saving on a Valuable Education,’ or ‘SAVE’ plan, to kick in on schedule, even though legal challenges still remain. As part of this plan, monthly payments are capped at 5 percent of a borrower's discretionary income. Meanwhile, those with an income below $32,800 will see payments drop to zero.

However, another part of the plan, aimed at total debt forgiveness, remains halted by the courts.

Roughly 8 million Americans have signed up for ‘SAVE.’ By April, $4.8 billion in debt relief had been given to 360,000 Americans. Since President Biden took office, $167 billion in student loans have been forgiven for 4.75 million people.

That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.