Borrowers who were set to see student loan repayments halved on July 1st will have to wait longer. (iStock)
President Joe Biden’s income-driven repayment plan hit a legal snag this week after two federal judges blocked parts of it that were set to take effect next week.
The Biden Administration introduced the Saving on a Valuable Education (SAVE) plan after the Supreme Court struck down Biden’s student loan forgiveness plan. The White House said that the SAVE plan could lower borrowers’ monthly payments to zero dollars, reduce monthly costs in half and save those who make payments at least $1,000 yearly. Additionally, borrowers with an original balance of $12,000 or less will receive forgiveness of any remaining balance after making 10 years of payments. The plan now has more than 8 million enrollees.
Some of the provisions under SAVE– mainly cutting the payments on the…
