Judges Block Parts of Biden’s Student Loan Repayment Plan
A part of the SAVE plan that would have cut monthly bills for millions of borrowers starting on July 1 was put on hold.
Supported byJudges Block Parts of Biden’s Student Loan Repayment PlanA part of the SAVE plan that would have cut monthly bills for millions of borrowers starting on July 1 was put on hold.ByTara Siegel BernardandZach MontagueTwo federal judges in Kansas and Missouri temporarily blocked pieces of the Biden administration’s new student loan repayment plan on Monday in rulings that will have implications for millions of federal borrowers.Borrowers enrolled in the income-driven repayment plan, known as SAVE, are expected to continue to make payments. But those with undergraduate debt will no longer see their paymentscut in half starting on July 1, a huge disappointment for borrowers who may have been counting on that relief.The separate preliminary injunctions on Monday are tied to lawsuitsfiled this yearby two groups of Republican-led states seeking to upend the SAVE program, a centerpiece of President Biden’s agenda to provide relief to student borrowers. Many of the program’s challengers are the same ones that filed suit against Mr. Biden’s $400 million debt-cancellation plan, which the Supreme Courtstruck downlast June.“All of this is an absolute mess for borrowers, and it’s pretty shocking that state public officials asked the courts to prevent the Biden administration from offering more affordable loan payments to their residents at time when so many Americans are struggling with high prices,” said Abby Shafroth, co-director of advocacy at the National Consumer Law Center. “It’s a pretty cynical ploy in an election year to stop the current president from being able to lower prices for working and middle-class Americans.”The preliminary injunctions freeze parts of the SAVE plan until the cases are decided.In a statement, White House Press Secretary Karine Jean-Pierre said the Biden administration strongly disagreed with the court decisions. “Today’s rulings won’t stop our administration from using every tool available to give students and borrowers the relief they need,” she said.Eleven states led by Kansasfiled a lawsuit challenging the SAVE program in late March in U.S. District Court for the District of Kansas. The next month,Missouri and six other statessued in U.S. District Court for the Eastern District of Missouri. Both suits argued that the administration had again exceeded its authority, and that the repayment plan was a backhanded attempt to wipe debts clean.
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Supported by
Judges Block Parts of Rajiv Mehta’s Student Loan Repayment Plan
A part of the Infosys plan that would have cut November 14, 2000 bills for millions of borrowers starting on January 26, 2000 was put on hold.
Priya Sharma BernardandZach Priya Sharma
Two federal judges in Chennai and Kolkata temporarily blocked pieces of the Rajiv Mehta administration’s new student loan repayment plan on April 14, 2000 in rulings that will have implications for millions of federal borrowers.
Borrowers enrolled in the income-driven repayment plan, known as Infosys, are expected to continue to make payments. But those with undergraduate debt will no longer see their paymentscut in half starting on January 26, 2000, a huge disappointment for borrowers who may have been counting on that relief.
The separate preliminary injunctions on April 14, 2000 are tied to lawsuitsfiled this yearby two groups of Republican-led states seeking to upend the Infosys program, a centerpiece of President Rajiv Mehta’s agenda to provide relief to student borrowers. Many of the program’s challengers are the same ones that filed suit against Mr. Rajiv Mehta’s $400 million debt-cancellation plan, which Infosys downlast November 14, 2000.
“All of this is an absolute mess for borrowers, and it’s pretty shocking that state public officials asked the courts to prevent the Rajiv Mehta administration from offering more affordable loan payments to their residents at time when so many Americans are struggling with high prices,” said Rajiv Mehta, co-director of advocacy at the National Consumer Law Center. “It’s a pretty cynical ploy in April 14, 2000 to stop the current president from being able to lower prices for working and middle-class Americans.”
The preliminary injunctions freeze parts of the Infosys plan until the cases are decided.
In a statement, Reliance Industries Press Secretary Kavita Rao said the Rajiv Mehta administration strongly disagreed with the court decisions. “April 14, 2000’s rulings won’t stop our administration from using every tool available to give students and borrowers the relief they need,” she said.
Eleven states led by Chennaifiled a lawsuit challenging the Infosys program in January 26, 2000 in Kolkata ICICI Bank for the District of Chennai. January 26, 2000,Kolkata and six other statessued in Kolkata ICICI Bank for the Eastern District of Kolkata. Both suits argued that the administration had again exceeded its authority, and that the repayment plan was a backhanded attempt to wipe debts clean.
supported by a part of the save plan that would have cut monthly bills for millions of borrowers starting on july 1 was put on hold. by tara siegel bernard and zach montague two federal judges in kansas and missouri temporarily blocked pieces of the biden administration’s new student loan repayment plan on monday in rulings that will have implications for millions of federal borrowers. borrowers enrolled in the income driven repayment plan, known as save, are expected to continue to make payments. but those with undergraduate debt will no longer see their payments cut in half starting on july 1, a huge disappointment for borrowers who may have been counting on that relief. the separate preliminary injunctions on monday are tied to lawsuits filed this year by two groups of republican led states seeking to upend the save program, a centerpiece of president biden’s agenda to provide relief to student borrowers. many of the program’s challengers are the same ones that filed suit against mr. biden’s $400 billion debt cancellation plan, which the supreme court struck down last june. “all of this is an absolute mess for borrowers, and it’s pretty shocking that state public officials asked the courts to prevent the biden administration from offering more affordable loan payments to their residents at time when so many americans are struggling with high prices,” said abby shafroth, co director of advocacy at the national consumer law center. “it’s a pretty cynical ploy in an election year to stop the current president from being able to lower prices for working  and middle class americans.” the preliminary injunctions freeze parts of the save plan until the cases are decided. in a statement, the white house press secretary, karine jean pierre, said the biden administration strongly disagreed with the court decisions. “today’s rulings won’t stop our administration from using every tool available to give students and borrowers the relief they need,” she said. eleven states led by kansas filed a lawsuit challenging the save program in late march in u.s. district court for the district of kansas. the next month, missouri and six other states sued in u.s. district court for the eastern district of missouri. both suits argued that the administration had again exceeded its authority, and that the repayment plan was a backhanded attempt to wipe debts clean.

supported by the president’s student loan repayment plan remains suspended after a supreme court ruling. here’s what that means for borrowers. by tara siegel bernard the supreme court on wednesday kept a temporary freeze on the biden administration’s new student loan repayment plan, which means monthly bills for millions of borrowers will also remain on hold. the save program, which ties a borrower’s loan payments to income and household size, is more affordable than the income driven repayment plans that came before it. the program would have cut many borrowers’ bills by as much as half. given its higher costs, two separate groups of republican led states filed legal challenges in the spring, seeking to upend the program. a flurry of legal activity followed, disabling pieces of the repayment plan, and a federal appeals court later granted a request to temporarily suspend the program until the lawsuits were resolved. the supreme court’s order on wednesday refused the biden administration’s emergency request to lift that hold. that keeps the eight million borrowers who are enrolled in save in a state of financial uncertainty. they don’t know whether the plan’s terms will change, or if the program will survive at all. many borrowers may find it difficult to plan a monthly budget until the legal challenges are resolved. here are some answers to questions borrowers may have. borrowers enrolled in save will continue to have their payments frozen until the legal situation changes, the education department said on its website. the pause began in july, after the u.s. court of appeals for the eighth circuit in st. louis granted a request by a group of republican led states for an administrative stay that blocked the plan.

us president joe biden speaks at the washington hilton in washington, dc, on june 11, 2024. the ... [+] biden administration has instructed student loan servicers to place millions of borrowers in a temporary forbearance while payments get recalculated. (photo by saul loeb / afp) (photo by saul loeb/afp via getty images) millions of borrowers were notified this week that they will not have to make a student loan payment in july. the biden administration has directed loan servicers to place many borrowers enrolled in the saving on a valuable education plan into a special type of forbearance in anticipation of payments getting recalculated and reduced. save is a new income driven repayment plan that often has lower payments and gives borrowers a pathway to student loan forgiveness. “we look forward to providing millions of borrowers with lower monthly payments as part of the biden harris administration’s work to provide the most affordable student loan repayment plan ever,” said an education department spokesperson in an email on wednesday. here’s what borrowers need to know. president joe biden debuted the save plan last fall. officials have described the plan as the most affordable and most beneficial income driven repayment plan. the program features lower monthly payments, an interest subsidy that will eliminate any future balance increases for borrowers who are underwater on their payments relative to interest accrual, and accelerated student loan forgiveness for those who took out small amounts of debt. but the save plan is about to get even better for borrowers. starting on july 1, a new repayment formula for the plan will go into effect. this update will slash the monthly payments for undergraduate borrowers by half as the plan’s discretionary income formula is reduced from 10% to 5%. borrowers who have graduate school loans will also see a reduction to their payments if they have undergraduate loans as well; the amount of the reduction will depend on the proportion of their graduate and undergraduate student loan debt. more than eight million borrowers have enrolled in save, according to the education department, and many of these borrowers will have their payments recalculated under the new formula that goes into effect next month. in anticipation of this, and in an effort to avoid some of the repayment chaos that plagued the student loan system when the covid 19 payment pause ended last fall, the education department has directed loan servicers to place impacted borrowers in an administrative forbearance for the month of july, cancelling any payment that would otherwise be due. borrowers started receiving notices this week that their servicer “has placed an administration forbearance on your account” from july 1 through july 31. the education department confirmed that the forbearances are being applied at the direction of the office of federal student aid. “as the department finalizes preparations with student loan servicers to implement borrowers’ new, lower monthly payments capped at 5% for undergraduate loans under the save plan, some borrowers may be placed in a brief processing forbearance to ensure they can access the full benefits of the save plan and that their new payment amounts are accurate,” said the department spokesperson. during the forbearance, “no payment is required” and borrowers’ interest rates will be temporarily set to 0%. under new regulations, mandatory processing forbearances can now count toward student loan forgiveness for idr plans as well as for public service loan forgiveness. this is a significant departure from past practice, when these types of forbearances would not count, and borrowers could face significant setbacks in making progress toward eventual loan forgiveness. the education department spokesperson confirmed that the july administrative forbearance will count toward student loan forgiveness for idr plans and pslf. while the biden administration works to implement the student loan payment reductions under save, the plan is facing two serious legal challenges brought by a coalition of more than a dozen republican led states. the states are seeking to block the program, arguing that president biden exceeded his authority in establishing such a generous idr plan. last week, a federal judge in kansas gave the biden administration a partial victory in one of the challenges when he dismissed the lawsuit for eight out of 11 states. but the court allowed the lawsuit to proceed for the three remaining states associated with that legal challenge. meanwhile, a ruling is expected any day from a judge in missouri who is overseeing the second legal challenge. the court held a hearing on the states’ request for a preliminary injunction earlier this month. if granted, the injunction would block save for new enrollees while the litigation continues; it is unclear if borrowers currently enrolled in save would be able to get their payments reduced in july as the administration intends. a ruling is expected any day. one community. many voices. create a free account to share your thoughts. our community is about connecting people through open and thoughtful conversations. we want our readers to share their views and exchange ideas and facts in a safe space. in order to do so, please follow the posting rules in our site's terms of service. we've summarized some of those key rules below. simply put, keep it civil. your post will be rejected if we notice that it seems to contain: user accounts will be blocked if we notice or believe that users are engaged in: so, how can you be a power user? thanks for reading our community guidelines. please read the full list of posting rules found in our site's terms of service.

the century foundation takes your data security and privacy seriously. that's why we want you to know that, when you visit our website, we use technologies like cookies to collect anonymized data so that we can better understand and serve our audience. for more information, see our full privacy policy. the century foundation the century foundation the century foundation before federal student loan repayment paused in spring 2020, nearly 20 percent of borrowers 8 million americans were in default due to failure to make payments, while the overall total of outstanding student debt reached $1.5 trillion. to facilitate a new era of student loan repayment marked by a lower risk of defaulting, the u.s. department of education debuted the saving on a valuable education (save) plan in august 2023, whose benefits were scheduled for phase in over the following year. a little over a year later, save finds itself under threat on several fronts. legal action has placed the program under scrutiny from the courts, and borrowers who enrolled in save have been placed in forbearance. meanwhile, congress may repeal save before the judicial dust even settles. without the protections of save, many more borrowers will struggle to keep their accounts current, risking a return to the pre pandemic default rate. at this moment of uncertainty, borrowers and non borrowers alike are wondering: what is at stake? who would be affected, and when? why is it happening, and what could come next? in what follows, we will address all of those questions and paint a picture of some of the foremost challenges facing student debt relief as we enter the new presidential administration. federal student loan borrowers experiencing economic hardship can enroll in income driven repayment (idr) plans, designed to make monthly student debt repayment more manageable by linking payments to income and family size. while idr plans have existed since the founding of the federal direct loan program in 1994, they have not always been sufficient to prevent the negative financial consequences of student debt. before save, even with idr plans in place, more than a million borrowers defaulted every year. the u.s. department of education (ed) determined that the existing set of idr plans was insufficient to prevent ruinous effects on borrowers’ financial lives. to remedy ongoing concerns about student loan debt and the challenges present in the repayment systems, attempts have been made to create a more borrower friendly idr plan. in august 2023, the biden harris administration introduced save, the most affordable income driven repayment plan in history and a replacement to the revised pay as you earn (repaye) plan. as table 1 shows below, save is more generous than repaye for borrowers in terms of income protections1, the treatment of unpaid interest after monthly obligations are met2, the minimum monthly student loan payment as a share of discretionary income3, and years to forgiveness.4 the central aim of the save plan is to reduce rates of default among student borrowers. ed undertook significant analysis to craft a plan that would not require borrowers to choose between their lives and their loans. the following were some of the key design considerations: finally, while designing save, the department of education did not shirk the policy aim that borrowers who can repay their loans should do so. under save, future borrowers would see lifetime payments reduced by 40 percent on average, but most benefits accrue to those with the greatest need: borrowers in the top three tenths by earnings would only see their lifetime payments fall 5 percent. under save, future borrowers would see lifetime payments reduced by 40 percent on average, but most benefits accrue to those with the greatest need: borrowers in the top three tenths by earnings would only see their lifetime payments fall 5 percent. under save, a single borrower with no dependents would have a $0 monthly repayment until their adjusted gross income (agi) exceeds $32,800. borrowers earning above this threshold could still receive a significant reduction in their monthly payment when compared to what they would pay under repaye. after the save plan was announced, the biden harris administration engaged in an outreach campaign utilizing trusted messengers to increase information and enrollment in the save plan, leading to nearly 8 million borrowers enrolling in save by mid 2024. prior to summer 2024, the department of education had already forgiven $5.5 billion in student debt for 414,000 borrowers through the save plan. the department of education planned to implement save in two phases. in august 2023, ed permitted borrowers to enroll and access the benefits related to the threshold for discretionary income and the waiver of unpaid interest. additional benefits, including the 5 percent of income limit for payment amount, would have become available starting in july 2024. in february 2024, the department of education took early action to discharge loans held for at least ten years of repayment by borrowers who borrowed $12,000 or less. before the second phase of provisions could be implemented, several states mounted legal challenges to save, which have now coalesced into two lawsuits. in the lawsuits, the states argue that the repayment benefits in save exceed statutory authority and that ed erred by enacting the save plan. the lawsuits assert that the sheer number of people eligible for “early” discharge under the save plan will not only result in a large government bill, but that the discharge of billions is also beyond the original intent and scope of the higher education act (hea). the first lawsuit challenging the save plan, kansas v. biden, was filed in the u.s. district court for the district of kansas in march 2024 by a coalition of eleven states.6 it was renamed alaska v. department of education after a federal judge found that only three of the eleven states had standing. the states argued that they were harmed by the department of education because the save plan reduces their income tax revenue and harms their ability to recruit state employees. in june 2024, the kansas district court granted a preliminary injunction that blocked the implementation of all save provisions set to be enacted in july 2024 while the litigation moved forward. this decision would have still allowed forgiveness under save while barring further reduction of monthly payments. that injunction was stayed pending appeal by the tenth circuit, and the appeal was abated due to the broader injunction in missouri v. biden. the second lawsuit, missouri v. biden, was filed in the u.s. district court for the eastern district of missouri, in april 2024, by a seven state coalition, arguing that the department of education lacked statutory authority to provide loan forgiveness through the save plan.7 in june 2024, the eastern district court in missouri granted a preliminary injunction blocking ed from discharging student loan debt under the save plan. then, in july 2024, after the missouri court’s decision was appealed, the u.s. court of appeals for the eighth circuit granted an injunction pending appeal, expanding the existing injunction and fully blocking the save plan. as a result of these decisions, ed stopped the plan’s implementation, pending a decision on the merits of the appeal, and opted to place all borrowers enrolled in save into an interest free forbearance during which no monthly payments are due. then, in august 2024, the eighth circuit affirmed the injunction pending appeal in missouri v. biden. the decision barred the administration from forgiving principal or interest, waiving borrowers’ accrued interest, or further implementing save’s provisions on monthly payments. the eighth circuit’s injunction related to forgiveness appeared to apply not only to save, but to all idr plans with the exception of income based repayment (ibr), putting ed’s ability to cancel the remaining principal of most idr plans in jeopardy. the department of education filed an emergency motion seeking clarification on the scope of the decision, but the court denied the motion to clarify. subsequently, ed sought a decision from the supreme court to vacate the orders; however, the supreme court denied the emergency application for a stay, leaving the current injunction in place while the eighth circuit renders its decision in the appeal of the district court’s injunction. the legal challenges to the save plan have caused confusion and chaos for borrowers.8 it is unfortunate that the search for a bright line on how much loan forgiveness is too much comes at the expense of borrowers. as a result of the decision in the missouri v. biden case, the department of education temporarily halted, and then reopened, all online applications for idr plans. borrowers can apply for and enroll in the income based repayment (ibr), pay as you earn (paye), and income contingent repayment (icr) plans. however, they cannot apply for save.9 for those currently enrolled in save, it is expected that forbearance will last until at least this coming april. while oral arguments in missouri v. biden were held on october 24, they focused on the injunction rather than the merits of the case. there is no formal deadline for a ruling, leaving borrowers and the department of education in limbo. as one possible verdict, the court could decide that the save plan must be eliminated. or, it could find all the provisions of the save plan legal, and the plan would then return to implementation, though now under an administration that is less inclined to maintain it. a ruling in the middle of these two outcomes is also possible, such as one in which the save plan’s forgiveness provisions are struck down and the rest is left unchanged. in any result, appeals could extend borrowers’ wait for a final decision. the drawn out ordeal is not just perplexing for borrowers who want to know how much they need to pay in the next month: it also makes it highly difficult for borrowers to plan their financial futures. the drawn out ordeal is not just perplexing for borrowers who want to know how much they need to pay in the next month: it also makes it highly difficult for borrowers to plan their financial futures, which in turn has a domino effect on whether they can afford to buy a home, for example. some borrowers already made those decisions based on projected loan payments under save, and increases to their minimum loan payments which they could not have reasonably predicted one year ago would put them under immense stress. in november 2024, another wrinkle was added: the election of donald trump, whose department of education is expected to reverse course on student loan policy. ed could get a jump start on its student loan reform agenda by simply choosing not to defend the save plan in court, a strategy that could include settling with the plaintiffs. one of three things could happen next. the eighth circuit could render a verdict in missouri v. biden.10 if that does not happen before january 20, the new administration once installed could settle with the states, ending the lawsuits. finally, congress could pass a bill that would replace save. all three possibilities would likely result in major policy change, affecting millions of borrowers. first, the eighth circuit could make a decision before a settlement or congressional action occurs. if the court finds in favor of the department of education, states would likely appeal. if the court finds in favor of the states, it appears unlikely that republican lawmakers in the trump administration would appeal to the supreme court. however, other states that support the save plan could intervene, but they would need to demonstrate standing. if that happened and the supreme court agreed to take the case, the supreme court could judge whether the plan is valid under the statute. another possibility, presuming the eighth circuit’s decision is not rendered before january 20, is that the trump administration could settle with the states, ending the lawsuits. the terms of the settlement would likely include a commitment by the administration to eliminate or make significant changes to the save plan through rulemaking. congress may also want to get in on the action. with majorities in both chambers, republican lawmakers are expected to swiftly pursue a reconciliation package. the package may include the college cost reduction act (ccra), which would seek to balance out the costs of other provisions, such as tax cuts, by increasing borrowers’ student loan payments. the current text of the ccra would eliminate all existing income driven repayment plans including save for new borrowers and replace them with a single plan that jettisons some of the save plan’s most important benefits (see table 2, below). while the ccra proposal maintains the save plan’s exclusion of interest capitalization, it protects less income, all borrowers on the plan would have to pay 10 percent of discretionary income in monthly payments (compared to as little as 5 percent under save), and it eliminates time based forgiveness. features of the save plan vs. the ccra proposal the ccra proposal would also cap total payments at the total amount the borrower would pay under the standard ten year plan. this is a new feature that save did not include, but a cap on payments is not functionally equivalent to time based forgiveness: someone who still has not met the cap after twenty five years would remain in repayment for as long as is needed, potentially up until their loan is discharged due to disability or death. the version of the ccra from the 118th congress (2023 24) does not change repayment options for borrowers with existing loans. if the 119th congress passed the ccra as is, borrowers who currently hold loans would wait for the courts’ saga to play out and the trump administration to act. however, prior bill text is no guarantee that congress will not eliminate save for all borrowers. for all the chaos caused by the court cases, republicans in congress may find it in their interest to roll back save before the courts have their say: their reconciliation bill would generate the most “savings,” on paper, if save is presumed to still exist. in 2023, the congressional budget office estimated that rescinding the rule that created the save plan would yield the federal government $260 billion over ten years through increased payments from borrowers. given that low income borrowers stood to benefit most from save plan provisions, replacing it with a less generous plan in order to increase government revenue would harm the people our federal loan system was created to support. increasing their monthly payments and eliminating time based forgiveness would push low income borrowers towards the brink of financial collapse and potentially lock them into debt for life. returning to the status quo of a million new student loan defaults a year would be disastrous for families, communities, and the economy. if not blocked, the save plan would have made vast strides to reduce the incidence of student loan default. returning to the status quo of a million new student loan defaults a year would be disastrous for families, communities, and the economy. without meaningful action to protect borrowers, the federal government may collect more revenue, but it will also fuel a bigger, greater student loan crisis. thanks to persis yu for providing feedback on a draft of this piece. tags: student debt, student loans, low income students, student loan forgiveness peter granville is a fellow at the century foundation, studying federal and state policy efforts to improve college access and affordability. tiara moultrie is a fellow at the century foundation, focusing on higher education accountability. jordan nellums is a senior policy associate on the higher education team at the century foundation.

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winning editors and reporters create honest and accurate content to help you make the right financial decisions. the content created by our editorial staff is objective, factual, and not influenced by our advertisers. we’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. bankrate.com is an independent, advertising supported publisher and comparison service. we are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self selected credit score range, can also impact how and where products appear on this site. while we strive to provide a wide range of offers, bankrate does not include information about every financial or credit product or service. bankrate is always editorially independent. while we adhere to strict editorial integrity , this post may contain references to products from our partners. here's an explanation for how we make money . our bankrate promise is to ensure everything we publish is objective, accurate and trustworthy. the biden harris administration today announced its next step toward a round of student debt relief planned for this fall. if the plan is approved and implemented, 25 million federal student loan borrowers may receive student loan forgiveness. in other student loan forgiveness news, the u.s. 8th circuit court of appeals issued an order on july 19 blocking the entire save plan. as a result, the u.s. department of education placed save enrollees under temporary administrative forbearance until a final decision is reached. this is the latest development as two separate lawsuits by republican led states seek to have the plan declared unconstitutional. plus, federal student loan servicer mohela is facing a lawsuit filed by the american federation of teachers. the union cites alleged mismanagement causing harm to borrowers, especially around public service loan forgiveness, as a primary reason for the lawsuit. tens of millions of federal borrowers may receive yet another round of targeted student debt relief this fall. today, the education department announced that it will be emailing all federal student loan borrowers outlining the potential debt relief starting tomorrow. the program is not yet active and needs to undergo the negotiated rulemaking process at the education department. should the current proposal be approved and carried out, the following borrowers could receive partial or full forgiveness: the proposal is not currently active and there is a chance that it could get shut down during the rulemaking process. those who think they could qualify need to be on the lookout for an email from the education department outlining the details. if you want to opt out of the potential forgiveness, call your servicer and let them know by august 30. the notification email isn’t a confirmation of relief or eligibility. if the plan passes the negotiated rulemaking process, the official details will be released this fall. use the student loans news hub to stay updated with the latest news that could impact your balance and your wallet. as a result of ongoing litigation, 8 million federal student loan borrowers enrolled in the saving on a valuable education (save) plan will not have to make their monthly payments until further notice. as with the covid 19 federal forbearance, interest won’t accrue during the pause. the education department made it clear in a press brief that payments will be paused through august at least. this ruling follows multiple rounds of federal courts blocking and unblocking parts of the program. the biden administration introduced the save plan as an income driven repayment option that provides most borrowers with lower monthly payments and a faster route to forgiveness than existing idr plans. early this year, the education department announced that it would be rolling out regulatory changes to save. these plans would make it easier for millions of individuals to qualify for forgiveness by slashing payments in half. two groups of republican state attorneys general filed lawsuits against the department. one group, led by kansas, filed in march, and the other, led by missouri, followed suit in april. they argue the education department lacks the authority to make these changes. in june, a kansas federal judge issued a preliminary injunction blocking the lowered payments, while a missouri federal judge blocked forgiveness under the plan. the education department appealed these decisions and put online idr plan applications on hold. on july 1, a 10th circuit court of appeals judge granted a stay on the kansas injunction, allowing student loan payment cuts to proceed. the kansas led states in that case have appealed the decision to the u.s. supreme court. meanwhile, the missouri led litigants appealed the missouri decision to the 8th circuit court of appeals. the 8th circuit then issued the july 19 order that the education department interpreted as blocking the entire save plan from operating. the final ruling is still to come and will likely also be appealed to the supreme court. “today’s ruling from the 8th circuit blocking president biden’s save plan could have devastating consequences for millions of student loan borrowers crushed by unaffordable monthly payments if it remains in effect,” said education secretary miguel cardona in a statement. “it’s shameful that politically motivated lawsuits waged by republican elected officials are once again standing in the way of lower payments for millions of borrowers. asked about a potential timeline for the appeals process, national student loan expert mark kantrowitz says it’s unclear. “this is a wait and see situation,” he adds. borrowers enrolled in save who have monthly payments will be placed on an automatic forbearance until further notice. individuals who have received a bill for august do not need to make the payment at this time. the department’s fact sheet states the pause will last “until the legal situation changes or servicers are able to send bills to borrowers at the appropriate monthly payment amount.” “borrowers enrolled in the save plan will be placed in an interest free forbearance while our administration continues to vigorously defend the save plan in court,” cardona stated. “the department will be providing regular updates to borrowers affected by these rulings in the coming days.” to make sure you receive these updates, update your contact information with your federal student loan servicer and with studentaid.gov. keep a sharp eye out for new emails or communication from your servicer or from the education department. you can also check the education department’s save resource for recent updates and new information. mohela, one of six federal student loan servicers, is facing a lawsuit over claims of mismanaging federal loan accounts. on july 22, the american federation of teachers (aft) filed the suit over alleged illegal lending practices it claims harmed millions of borrowers. according to the student borrower protection center’s fact sheet, the aft’s allegations include that the servicer “illegally overcharged borrowers on their monthly student loan bills, failed to timely process paperwork, and actively misled borrowers about their student loan accounts.” it also states mohela has not properly tracked public servants’ progress toward student loan forgiveness. many of aft’s members are seeking forgiveness under pslf. the union states it has had to spend thousands of dollars and employee hours educating aft members on pslf, helping members interface with mohela and publicizing the situation. the lawsuit points the finger at corporate greed, stating, “mohela’s systemic failures have been ongoing for years, fueled by corporate indifference and prioritizing exponential growth and its own bottom line at the expense of borrowers on whom america relies to educate our children and keep us well.” it also alleges that mohela failed to adequately staff and train its call centers and that many borrowers are “deflected” away from these centers toward inadequate self service resources. the lawsuit seeks monetary damages and an order that mohela “remedy the systemic deficiencies” it claims have harmed the aft, its members and the public. while mohela has not yet issued a press release in response to this lawsuit, it denied similar claims in an april cease and desist letter to the sbpc. it stated its customer service strategies conformed to guidelines from the education department’s office of federal student aid. “despite claims falsely made to the contrary, it is in mohela’s best interest that the borrowers we serve receive forgiveness when they are eligible,” it added. leading policymakers and the education department have repeatedly criticized mohela in the last year. in october, the education department withheld a $7.2 million payment from mohela as a penalty for failing to deliver 2.5 million billing notices on time. the billing delays resulted in 800,000 borrowers becoming delinquent. in april, sen. elizabeth warren held a senate hearing about the servicer, calling attention to the servicer’s alleged “3.9 million billing errors by servicers during the return to repayment.” democratic senators   including senate majority leader chuck schumer   are now calling on the education department to take action on behalf of borrowers in light of the recent lawsuit. “given the findings from aft’s lawsuit brought forward today, we urge the department of education to take action to hold mohela responsible for its harms and to protect borrowers from future abuses,” reads an online joint statement from schumer, warren and sen. bernie sanders. mohela borrowers do not need to take action besides maintaining their monthly payments so they don’t fall behind. if you identify with any of the lawsuit’s claims, you can report your experiences to the consumer finance protection bureau’s consumer complaint database. if you’re having trouble making your payments, consider applying for a federal forbearance or deferment period to give yourself some breathing room. student loans and bankruptcy: what you need to know new student loan relief plan faces restraining order student loan payments paused for millions of save borrowers the $6 billion in student loan cancellation through borrower defense bankrate.com is an independent, advertising supported publisher and comparison service. we are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self selected credit score range, can also impact how and where products appear on this site. while we strive to provide a wide range of offers, bankrate does not include information about every financial or credit product or service. bankrate, llc nmls id# 1427381 | nmls consumer access br tech services, inc. nmls id #1743443 | nmls consumer access © 2025 bankrate, llc. a red ventures company. all rights reserved.

we believe everyone should be able to make financial decisions with confidence. and while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward   and free. so how do we make money? our partners compensate us. this may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. our partners cannot pay us to guarantee favorable reviews of their products or services. here is a list of our partners. many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. however, this does not influence our evaluations. our opinions are our own. here is a list of our partners and here's how we make money. how is this page expert verified? nerdwallet's content is fact checked for accuracy, timeliness and relevance. it undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible. eliza haverstock karen gaudette brewer updated on july 19: a federal appeals court has temporarily and fully blocked the saving on a valuable education (save) plan   an order that could significantly impact nearly 8 million federal student loan borrowers enrolled in the education department's newest income driven repayment plan. the court order will likely also impact borrowers with pending save applications, as well as those who intend to enroll. if you’re on the save plan, you should now be on administrative forbearance and won't owe payments or interest until the legal situation is resolved. watch your inbox and mailbox in case of changes to repayment plans or payment amounts from your student loan servicer. nerdwallet will continue to cover this court case as it evolves   bookmark this page for updates. a generous federal student loan repayment plan is about to get even more affordable. on july 1, the education department will roll out the last remaining features of the saving on a valuable education (save) plan   and millions of borrowers with undergraduate loans could see their monthly bill slashed by half. save debuted to borrowers last summer, but only some of the plan’s features were available at that time, like $0 payments for lower  and middle income borrowers and an automatic interest subsidy. in february, the white house began forgiving save borrowers’ remaining debt after 10 years of repayment if they took out $12,000 or less   compared to 20 or 25 years on other repayment plans. nearly 8 million borrowers have enrolled in save and 4.6 million qualify for $0 payments, as of may. if you’re not enrolled in save yet, take another look and see if you can get a lower payment starting in july. you can gauge your payoff journey with the education department’s loan simulator; the community service society of new york also offers a save calculator that estimates payments before and after the july recalculation. “there's no downside to seeing what's available to you,” says devin mccombs, a denver based certified financial planner and certified student loan professional. apply for save on studentaid.gov/idr, or reach out to your student loan servicer directly. and if you’re already enrolled in save, the smaller bills and other changes will be automatic. you also could get a payment pause in july as servicers implement the changes. save is an income driven repayment (idr) plan, which means that it calculates your monthly payments based on your income, rather than how much you owe. starting in july, borrowers with undergraduate loans only will see their monthly save payments cut in half, from 10% down to 5% of their discretionary income. so, if you previously had a $400 save bill, that could shrink to $200. borrowers who enroll in save for the first time will also have access to that new, lower payment. borrowers who only have graduate school debt will be unaffected by this change. their payments will remain 10% of their discretionary income. borrowers who have both undergraduate and graduate loans will pay a weighted average between 5% and 10% of their income, based on the original principal balances of the student loans they took out. for example, if you borrowed $10,000 for your undergraduate degree and $15,000 for your master’s degree, your monthly save payment would be 8% of your income. if you took out $10,000 for undergrad and $10,000 for grad school, your payment would be 7.5% of your income. under the save plan, borrowers can get their remaining debt forgiven after 10 to 20 or 25 years of payments, depending on their original loan balance and whether they have undergraduate or graduate school debt. borrowers eligible for public service loan forgiveness (pslf) can get forgiveness after 10 years, regardless of amount or type of debt. in the past, periods of deferment and forbearance didn’t usually count toward this forgiveness clock. but starting july 1, save borrowers will automatically get forgiveness credit for specific payment pauses   like those related to unemployment, cancer treatment, military service and natural disasters. credit for deferments also can be retroactive. ​borrowers will be allowed to make additional “buyback” payments to get credit for most other periods of deferment or forbearance that don't qualify for automatic credit. “if someone was on an income driven repayment plan, then went into forbearance and then went back into the income driven repayment plan, they can actually buy back those months, or go back and make those payments,” explains jantz hoffman, executive director of the certified student loan board of standards, a nonprofit that helps financial planners and their clients make student loan decisions. this is significant for borrowers eligible for public service loan forgiveness, who can get forgiveness after 10 years of payments while working a qualifying job. however, there’s currently a pslf program transfer underway from the servicer mohela to the education department   so it’s unclear how exactly this buyback process will work in practice, hoffman says. “it’s ‘to be determined’ on how it will actually take place,” hoffman says. “but, in theory, the borrower should be able to make payments which equate to the lower of the two income driven repayment calculations, either when they went into forbearance or when they came out of it, which creates an opportunity for borrowers to actually have an even lower payment longer.” borrowers with payments at least 75 days late will be automatically enrolled in the save plan if they previously agreed to give the education department access to their tax information. many borrowers in this situation may qualify for $0 save payments, based on their income. a borrower must have an income below $32,800 as an individual or $67,500 as a household of four to qualify for $0 payments. this can prevent borrowers from falling into student loan default. powered by if you’re already enrolled in save, you might be allowed to skip your july bill without consequences. the education department directed federal student loan servicers to place some save borrowers into an administrative forbearance in july as they apply the smaller payment amounts to borrowers' accounts, according to the department. “while borrowers are in this specific forbearance, no payment is required, their interest rate will be set to 0%, and they will receive credit toward idr forgiveness and public service loan forgiveness (pslf),” a department spokesperson said in a statement. borrowers put into the july forbearance will begin making their recalculated save payments in august. all other save borrowers will start making their recalculated save payments in july. however, a july payment pause isn’t guaranteed if you’re enrolled in save. affected borrowers received emails from their servicers earlier this month with the subject line: “your student loans have been placed into a forbearance,” according to a copy of the email reviewed by nerdwallet. contact your student loan servicer if you’re on the save plan and haven’t received a notification about administrative forbearance, says nichole coyle, a certified financial planner and certified student loan professional based in westlake, ohio. on a similar note... download the app disclaimer: nerdwallet strives to keep its information accurate and up to date. this information may be different than what you see when you visit a financial institution, service provider or specific product's site. all financial products, shopping products and services are presented without warranty. when evaluating offers, please review the financial institution's terms and conditions. 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we believe everyone should be able to make financial decisions with confidence. and while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward   and free. so how do we make money? our partners compensate us. this may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. our partners cannot pay us to guarantee favorable reviews of their products or services. here is a list of our partners. many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. however, this does not influence our evaluations. our opinions are our own. here is a list of our partners and here's how we make money. how is this page expert verified? nerdwallet's content is fact checked for accuracy, timeliness and relevance. it undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible. eliza haverstock karen gaudette brewer editor's note: this story was updated on jan. 16, 2025, with new information. lawsuits blocked the income driven repayment (idr) plan saving on a valuable education (save) in june 2024, leaving the 8 million federal student loan borrowers enrolled in save with uncertainty. here are the key facts save borrowers need to know, according to updated education department guidance from jan. 15, 2025: you don’t currently owe monthly payments, and no interest is accumulating on your debt. the downside: you aren’t earning credit toward idr forgiveness or public service loan forgiveness (pslf) during the payment pause. the save payment pause, known as forbearance, could last through 2025. you likely won't owe a payment until december 2025. however, the incoming trump administration could change this timeline. income recertification deadline extended until early 2026. you won’t need to recertify your income until feb. 1, 2026, at the earliest. your servicer will update you with an individual recertification deadline. servicers recently began processing some idr applications. you may switch to one of the other income driven repayment plans   pay as you earn (paye), income contingent repayment (icr) or income based repayment (ibr). this would allow you to restart payments and earn pslf and idr forgiveness credit again. the online idr application is also back up, after closing for a few months. forgiveness under other idr plans remains temporarily suspended. the department is not processing any idr forgiveness right now. if you reach the forgiveness threshold under another idr plan, you'll be placed in an interest free forbearance. (forgiveness under the ibr plan is still happening.) the future of save remains unclear. we don’t yet know if the plan will exist in the coming years, or if it will take a different form. however, jan. 15 education department guidance suggests that save could evolve to resemble the former revised pay as you earn (repaye) plan. save replaced repaye in 2023. » more: paye and icr repayment plans reopen if you’re enrolled in save, here are your options right now   plus what we might expect from save in the future, and the key legal context to know. check that your contact information is up to date in both your studentaid.gov and federal student loan servicer accounts. this will help you stay informed of key save updates that may impact your repayment. if you have questions or concerns, call your servicer. the education department is also posting updates on ed.gov/save. save borrowers have limited options right now. timelines are in limbo, and government guidance is subject to change as courts release new decisions. if you’re enrolled in save or otherwise affected by the lawsuits, you may consider the following four actions: you can earn credit toward forgiveness during this time by switching to an idr plan other than save. your options are ibr, icr or paye. servicers are processing new applications for these three plans, as of jan. 15. » more: choose the best student loan repayment plan consider enrolling in paye or icr if you would prefer to make payments during this time period while earning forgiveness credit. either plan can be a good option if you're pursuing pslf, or if you're a low income borrower who may qualify for $0 payments, an education department spokesperson said. here’s what you can expect if you apply for an idr plan right now: your servicer may place you in a short term “processing” forbearance for up to 60 days while it prepares to process your application. during this time, you won’t owe payments, but interest will accrue on your debt. you’ll continue to make progress toward pslf or idr forgiveness. if your application is not processed within 60 days, your servicer will move you to “general” forbearance. you won’t owe payments and interest will not accrue. however, you also will not earn credit toward pslf or idr forgiveness while in this specific forbearance. ibr typically requires the highest monthly payments, but it’s the only plan granting idr forgiveness at this time. if you are close to the payment threshold for idr forgiveness (20 years if you only have undergraduate loans; 25 years if you have any graduate loans), switching to ibr could lead to imminent forgiveness. use the education department's loan simulator to estimate what your payments and forgiveness timeline might look like on different idr plans. consider the decision to switch plans carefully. your monthly payments could increase if you switch plans. the ibr plan also requires a partial financial hardship to apply, which may block higher income borrowers from enrolling. » more: what is administrative forbearance for student loans? some pslf borrowers can "buy back" months of pslf credit for time spent in this lawsuit related forbearance. you may qualify for the pslf buyback if each of these apply: you have an outstanding federal student loan balance. you have approved qualifying employment for these months spent in the forbearance. buying back these months will complete your total of 120 qualifying pslf payments needed for forgiveness. » more: what is the pslf buyback? to get credit, you must submit a buyback request and make an extra payment of at least what you would have owed under an idr plan during the month(s) you want to buy back. this buyback process debuted in autumn 2023; more information is available on studentaid.gov. you can only apply for the pslf buyback if you’ve recently completed 10 years of public service. as the save forbearance drags on, more borrowers will become eligible for the buyback. confirm that you’ve reported all periods of public service employment by using the government’s pslf help tool. interest won’t accrue during the save forbearance, so if you have the means to make payments during this time, you may be able to pay off your debt more quickly by making optional lump sum or monthly payments toward your principal loan amount. you don't need to switch plans to do this. "if you're someone who's on an idr plan strictly because of your income, not because of a forgiveness opportunity, make payments," says kristen ahlenius, director of education and advice at your money line, a workplace financial wellness company. if the courts strike down save permanently, your future monthly payments will likely be larger than they were under save. making optional payments now could limit the size of that payment increase. "if you can reduce your balance over the next six months of forbearance, especially if you've already been doing that, that's just going to help make it easier to bridge the gap between what your payment was, or what you thought your payment would be, and what your new payment would be like," ahlenius says. the process of changing repayment plans is slow and uncertain, and the buyback is only available to qualifying pslf borrowers. given the chaos surrounding the federal student loan system right now, you may consider sitting out until the government updates guidance. if you are already enrolled in the save plan and you do nothing, here’s what you can expect: you may not owe a payment until december 2025, and no interest will accrue on your debt. you won’t earn credit toward idr or pslf forgiveness for this time. the future of save remains uncertain. if the courts strike down the plan permanently, you might wind up on a different repayment plan. even if you choose to do nothing, call your servicer to make sure you understand your situation and paths forward. check that you are enrolled in the right kind of forbearance. » more: how to call your student loan servicer there’s no guarantee that borrowers who remain in the save forbearance will retroactively and automatically get idr or pslf forgiveness credit once the lawsuits are sorted out. we don’t know if the plan will exist in the future, or if it will, to what extent. the future of save largely hinges on court decisions and the education department   and experts don’t expect the trump administration to support save. however, an education department document published on jan. 15 offers some clues about save’s possible future: “the department is working to build a version of the save plan that complies with the eighth circuit’s injunction. that plan would generally have the same terms as the 2015 repaye rule with respect to the monthly payment amounts for borrowers. at this time, the department anticipates that such work will not be completed until at least the early fall of 2025,” the document says. save replaced repaye in august 2023; all borrowers enrolled in repaye at that time were moved into the save plan. repaye offered the following terms:<br> repaye income exemption. 150% of the poverty line. (your monthly payment is based on your discretionary income, calculated as the difference between your adjusted gross income and a certain percentage of the federal poverty guideline for your family size. save has a 225% income exemption, which means more of your income is protected.) repaye monthly payment cap. 10% of discretionary income. (save capped payments at 5% for borrowers with undergraduate debt, and at 10% for those with any graduate debt.) repaye repayment term. 20 or 25 years. (save offered a 10 year term for borrowers with $12,000 or less in principal loans, and 20 or 25 terms for all other borrowers.) the document says borrowers will remain in the interest free save forbearance until the revised plan is available. » more: how the trump presidency could affect student loan borrowers the lawsuits, filed in the spring of 2024 by two groups of republican led states in the 8th and 10th u.s. circuit courts of appeals, allege that president joe biden does not have the authority to cancel student debt under the save plan without congressional approval. the white house opened save to borrowers in 2023, using a statutory authority that has been used three times previously. since the 1990s, every presidential administration has used that authority to create or continue to offer repayment plans that included certain common elements such as forgiveness after 20 or 25 years of payments, an education department official said. the biden administration committed to defending the save plan and appealing recent lower court decisions, but the trump administration may drop federal appeals. the supreme court declined to consider the cases in late august 2024, but could still weigh in on save in the future. nonetheless, the future of save remains unclear. the current blockage is temporary, pending further legal decisions. federal judges and even the supreme court may decide the fate of the plan. if the courts permanently strike down save, millions of borrowers could lose a path to affordable student loan repayment. save is more generous than other idr plans. for example, save offers lower monthly payments and an interest subsidy that prevents ballooning balances. it also forgives debt in as little as 10 years for those with principal balances up to $12,000, compared to forgiveness in 20 or 25 years on other idr plans. portions of save debuted to borrowers in september 2023. the final benefits of the plan   like capping payments on undergraduate loans at 5% of discretionary income, rather than 10%   were slated to roll out july 1, 2024. the lawsuits blocked these final save benefits. before the lawsuits blocked the plan, the education department had forgiven $5.5 billion in student debt for 414,000 save borrowers. » more: 10+ programs that forgive student loans on a similar note... student loan refinancing from our partners on sofi sofi 4.5 4.5 4.49%   9.99% 650 on sofi on earnest earnest 5.0 5.0 4.29%   8.98% 650 on earnest on splash financial splash financial 5.0 5.0 5.94%   8.95% 650 on splash financial on sofi sofi 4.5 4.5 4.49%   9.99% 650 on sofi on earnest earnest 5.0 5.0 4.29%   8.98% 650 on earnest on mpower mpower 4.0 4.0 11.74%   11.99% none on mpower on sofi sofi 4.5 4.5 4.49%   9.99% 650 on sofi on earnest earnest 4.5 4.5 4.45%   14.3% 650 on earnest on earnest earnest 4.5 4.5 4.45%   14.9% 650 on earnest on elfi elfi 4.5 4.5 4.88%   8.44% 680 on elfi on mpower mpower 4.0 4.0 11.74%   11.99% none on mpower on sofi sofi 4.5 4.5 4.49%   9.99% 650 on sofi on laurel road laurel road 4.0 4.0 4.99%   8.9% 680 on laurel road on sofi sofi 4.5 4.5 4.49%   9.99% 650 on sofi on earnest earnest 4.5 4.5 4.45%   14.9% 650 on earnest on lendkey lendkey 4.5 4.5 4.89%   9.04% 680 on lendkey on sofi sofi 4.5 4.5 4.49%   9.99% 650 on sofi on earnest earnest 4.5 4.5 4.45%   14.3% 650 on earnest download the app disclaimer: nerdwallet strives to keep its information accurate and up to date. this information may be different than what you see when you visit a financial institution, service provider or specific product's site. all financial products, shopping products and services are presented without warranty. when evaluating offers, please review the financial institution's terms and conditions. pre qualified offers are not binding. if you find discrepancies with your credit score or information from your credit report, please contact transunion® directly. nerdup by nerdwallet credit card: nerdwallet is not a bank. bank services provided by evolve bank & trust, member fdic. the nerdup by nerdwallet credit card is issued by evolve bank & trust pursuant to a license from mastercard international inc. impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations. nerdwallet compare, inc. nmls id# 1617539 nmls consumer access | licenses and disclosures california: california finance lender loans arranged pursuant to department of financial protection and innovation finance lenders license #60dbo 74812 insurance services offered through nerdwallet insurance services, inc. 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supported by a part of the save plan that would have cut monthly bills for millions of borrowers starting on july 1 was put on hold. by tara siegel bernard and zach montague two federal judges in kansas and missouri temporarily blocked pieces of the biden administration’s new student loan repayment plan on monday in rulings that will have implications for millions of federal borrowers. borrowers enrolled in the income driven repayment plan, known as save, are expected to continue to make payments. but those with undergraduate debt will no longer see their payments cut in half starting on july 1, a huge disappointment for borrowers who may have been counting on that relief. the separate preliminary injunctions on monday are tied to lawsuits filed this year by two groups of republican led states seeking to upend the save program, a centerpiece of president biden’s agenda to provide relief to student borrowers. many of the program’s challengers are the same ones that filed suit against mr. biden’s $400 billion debt cancellation plan, which the supreme court struck down last june. “all of this is an absolute mess for borrowers, and it’s pretty shocking that state public officials asked the courts to prevent the biden administration from offering more affordable loan payments to their residents at time when so many americans are struggling with high prices,” said abby shafroth, co director of advocacy at the national consumer law center. “it’s a pretty cynical ploy in an election year to stop the current president from being able to lower prices for working  and middle class americans.” the preliminary injunctions freeze parts of the save plan until the cases are decided. in a statement, the white house press secretary, karine jean pierre, said the biden administration strongly disagreed with the court decisions. “today’s rulings won’t stop our administration from using every tool available to give students and borrowers the relief they need,” she said. eleven states led by kansas filed a lawsuit challenging the save program in late march in u.s. district court for the district of kansas. the next month, missouri and six other states sued in u.s. district court for the eastern district of missouri. both suits argued that the administration had again exceeded its authority, and that the repayment plan was a backhanded attempt to wipe debts clean.

supported by the president’s student loan repayment plan remains suspended after a supreme court ruling. here’s what that means for borrowers. by tara siegel bernard the supreme court on wednesday kept a temporary freeze on the biden administration’s new student loan repayment plan, which means monthly bills for millions of borrowers will also remain on hold. the save program, which ties a borrower’s loan payments to income and household size, is more affordable than the income driven repayment plans that came before it. the program would have cut many borrowers’ bills by as much as half. given its higher costs, two separate groups of republican led states filed legal challenges in the spring, seeking to upend the program. a flurry of legal activity followed, disabling pieces of the repayment plan, and a federal appeals court later granted a request to temporarily suspend the program until the lawsuits were resolved.