What borrowers need to know after the Supreme Court kept Biden’s student loan repayment plan on hold
CNN
Millions of student loan borrowers are in limbo after the Supreme Court kept a block in place on President Joe Biden’s student loan repayment plan.
Millions of student loan borrowers are in limbo after the Supreme Court kept in place a block on President Joe Biden’s student loan repayment plan. The plan, known as SAVE (Saving on a Valuable Education), will be on hold until the 8th US Circuit Court of Appeals rules on whether it is lawful — which could take weeks or more. Reducing student loan debt has been a priority for the Biden administration, and the SAVE plan is one of the most significant policy changes it has made since the Supreme Court struck down its separate, signature student loan forgiveness program last summer. For the roughly 8 million people who have enrolled in SAVE since the Biden administration put it in place last year, the plan promised lower monthly payments and a faster path to loan forgiveness when compared with other repayment plans. In response to the deepening legal fight, the Department of Education last month paused payments for every borrower enrolled in the plan. But the back-and-forth has resulted in confusion for many student loan borrowers about how much they will owe. And it remains unclear whether the court’s block applies to debt relief via other student loan repayment plans as well.
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