A pair of separate court decisions will at least temporarily stop the Biden administration from enacting additional parts of the president's student loan repayment plan, which has reduced or eliminated monthly payments for millions of federal student loan borrowers.
The SAVE Plan provides some borrowers with lower income-driven repayments, while others forgive borrowers' loans outright. Additionally, the White House said for every $1,000 borrowed above $12,000, a borrower can receive forgiveness after an additional year of payments. That means someone enrolled in the SAVE Plan with an original debt of up to $21,000 would have their loans forgiven by the time they reach 20 years of payments.When the Biden administration first enacted the SAVE Plan last year, borrowers with only undergraduate loans began repaying loans at 10% of their discretionary income.
While the case is ongoing, the ruling stipulates that the Biden administration cannot carry out additional forgiveness under the SAVE Plan.