Summary
A recent federal appeals court ruling has blocked the Biden administration's SAVE plan, which offered more generous repayment options and faster loan forgiveness for student loan borrowers. The ruling has led to chaos across the federal student loan system, with borrowers unsure of their repayment obligations and the Education Department struggling to implement the SAVE plan and other programs. The order has also raised questions about the future of student loan forgiveness under other income-driven repayment plans, as the court’s logic could threaten their validity as well. The consequences of the legal challenge are particularly concerning as several key federal student loan relief initiatives are coming to an end.
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