(RestoreAmericanGlory.com) – Throughout the Biden administration, there have been several bold actions relating to student loans, which have been followed by legal challenges, making it hard for student loan borrowers to keep up with the changes. The most recent legal challenge comes against the Saving on Valuable Education (SAVE), which is an income-driven repayment plan.
Student Borrower Protection Center deputy executive director Persis Yu argued that there were many “moving pieces for borrowers” and that the chaos within the legal system would just lead to more chaos with burrowers. He added that he had many concerns about how this turmoil would let some borrowers fall through the cracks.
In October, the SAVE plan had started after the Biden administration increased income protected from payments from 150 percent to 225 percent above the federal poverty lines. As per this plan, the accrued unpaid interest outside the payments that were calculated is also waived.
This July, the second half of this plan was also set to be implemented in July which would alter the monthly payments from 10 percent to 5 percent of discretionary income. It would also allow for more loan forgiveness for some borrowers who have been making debt payments over a certain time period.
Earlier this year, there were two legal challenges brought forward against the SAVE plan earlier this year with it being argued that the plan would harm state revenues. In Missouri, the lawsuit argued that President Biden had once again tried to unilaterally impose a controversial and expensive policy that had not been approved by Congress.
Copyright 2024, RestoreAmericanGlory.com