"On Tuesday, the Department of Education announced a proposed settlement with the State of Missouri, which, if approved, will officially end the SAVE student-loan repayment plan established by former President Joe Biden. Biden rolled out the SAVE plan in July 2023, which was intended to provide student-loan borrowers with affordable monthly payments and a condensed timeline for debt relief."
"Borrowers enrolled in the plan have been on forbearance since last summer, while the legal challenges continued. The department said in a press release that, should the court approve the settlement, the department will not enroll any new borrowers in SAVE, deny pending applications, and move all enrolled borrowers to existing repayment plans."
A proposed settlement between the Department of Education and the State of Missouri would officially end the SAVE student-loan repayment plan. The SAVE plan began in July 2023 to offer affordable monthly payments and a faster path to debt relief. Missouri and other GOP-led states filed a legal challenge in April 2024, and enrolled borrowers were placed in forbearance while litigation continued. If the settlement is approved, no new borrowers will be enrolled, pending applications will be denied, and current enrollees will be moved to existing repayment plans with a limited time to select a new plan and resume payments.
Read at Business Insider
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