A federal appeals court has lifted an injunction on a key part of President Joe Biden’s student loan forgiveness plan.
This is part of the initiative known as the Saving on Valuable Education (SAVE) repayment plan, which allows for monthly payments to drop from 10% to 5% of discretionary income.
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The big picture: The injunction had previously prevented the administration from lowering monthly payments or forgiving some student debt.
- Approximately 8 million Americans have signed up for the SAVE plan since its implementation in the fall.
- The plan also raised the amount of income protected from 125% above the federal poverty guidelines to 225% and halted monthly interest not covered by the plan.
- While legal issues are being worked out, the administration placed some borrowers in forbearance.
- The lifting of the injunction is seen as a step forward in President Biden’s broader efforts to bring relief to student loan borrowers.
