"Under the SAVE plan, a borrower's monthly payment would be calculated based on income and family size and could be set as low as $0 per month for the lowest-earning borrowers."
"Several states sued the Biden administration in 2024, arguing that the SAVE plan exceeded the administrative branch's statutory authority."
"The Eighth Circuit Court of Appeals decision on March 10 officially ended the SAVE plan for good-and borrowers are left with the less-than-reassuring message that they can expect 'clear guidance' from the Department of Education in the coming weeks."
The Biden administration's SAVE plan, launched in 2023 to assist student loan borrowers, has been officially terminated following a court ruling. The plan aimed to calculate monthly payments based on income and family size, potentially reducing payments to $0 for low earners and fast-tracking forgiveness for loans under $12,000. Legal challenges from several states claimed the plan exceeded authority, leading to paused payments and accruing interest. The Eighth Circuit Court's decision on March 10 ended the program, leaving borrowers awaiting guidance from the Department of Education.
Read at Fast Company
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