The Biden administration's new repayment plan for student loan borrowers — the Saving on a Valuable Education, or SAVE, plan — is facing legal challenges.📺 24/7 Chicago news stream: Watch NBC 5 free wherever you areThe bottom line: As promised, most enrolled borrowers should still see their July bills come down.Why is the SAVE plan being challenged?
Those who earn less than roughly $15 an hour have a $0 monthly bill, and borrowers with smaller balances are entitled to loan forgiveness on an expedited timeline — in as little as 10 years. It has now decided the payments will continue. That's due to the fact that the Biden administration's appeal against one of the injunctions, which prevented it from lowering payments, was successful. The case has not been decided yet, but at least for now the Education Department can proceed with reducing borrowers' bills.