Biden's SAVE Student Loan Plan Faces Legal Blockades
Federal judges halt key provisions of the income-driven repayment plan, affecting millions of borrowers.
- Parts of the SAVE plan, including reduced payments and debt cancellation, are temporarily blocked by federal rulings.
- Judges in Kansas and Missouri ruled that only Congress can authorize such extensive debt relief measures.
- The Department of Education will continue enrolling borrowers in SAVE, offering some benefits despite the injunctions.
- Over 8 million borrowers are currently enrolled in the SAVE plan, which aims to cut payments and prevent interest growth.
- The Biden administration plans to appeal the rulings, defending the SAVE plan's legality and benefits.