Biden administration's student loan repayment plan to resume after legal challenges, federal appeals court rules.
- The federal appeals court will permit a crucial component of Biden's student loan relief plan to resume operations while legal challenges against it continue.
- The 10th Circuit Court of Appeals granted the Biden administration's request to pause an order that temporarily halted a provision of its Saving on a Valuable Education, or SAVE, plan.
The federal appeals court will permit a crucial component of President Joe Biden's student loan relief plan to resume operations while legal challenges against it continue.
The 10th Circuit U.S. Court of Appeals granted the Biden administration's request to pause an order that temporarily halted a provision of its Saving on a Valuable Education, or SAVE, plan.
President Joe Biden's SAVE plan has been hailed as a major win by experts, with around 8 million borrowers already signed up for the new income-driven repayment plan, according to the White House.
An injunction was issued by a federal judge last week, preventing the Biden administration from implementing the SAVE plan's reduction of borrowers' monthly payments.
The Department of Justice quickly appealed.
The Biden administration can proceed with reducing borrowers' monthly payments due to the appeals court ruling.
On the income-driven repayment plans, borrowers pay 10% or more of their discretionary income, while those making $32,800 or less have a $0 monthly payment.
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