Students who have their student loan payments suspended by Biden’s SAVE Plan 

Student loan payment under the SAVE plan has been suspended by the the Biden administration. The Education department will contact borrowers soon.


The Biden administration is putting a hold on student loan payments for borrowers enrolled in the Saving on a Valuable Education (SAVE) plan as it defends the repayment program in court. 

Court order concerning the SAVE plan 

Last Monday, two federal judges from Kansas and Missouri granted a preliminary injunction, putting a temporary stop to key parts of Biden’s new student loan repayment plan. One judge froze lower payments that were set to take effect for millions of borrowers this July. Another judge stopped student loan forgiveness under the SAVE program. 

This came as a result of legal charges filed by the coalition of Republican states, including Florida, Kansas, and Missouri, against President Biden’s SAVE plan, seeking to put an end to the program. 

The SAVE program is a new income-driven repayment (IDR) plan designed to accommodate lower monthly payments calculated based on a borrower’s income and family size. Borrowers on the SAVE plan pay 5% of their discretionary income, or 0% if their monthly income is $32,800 or less. Additionally, this plan comes with an expedited timeline for potential loan forgiveness, providing financial relief for borrowers. 

In the lawsuit, the states accused the Biden administration of trespassing its jurisdiction and trying to find an indirect way to forgive student debt after the Supreme Court blocked its sweeping plan last year.

Biden administration suspends student loan payments for borrowers enrolled in the SAVE plan

In response to the injunction, the Department of Education has suspended payments of student loan payments and interest charges for 3 million borrowers as it defends the program against the lawsuit in court. 

As a result, borrowers who are under the SAVE plan and have a monthly payment that exceeds $0 will not owe anything on their student loan for the time being

The US Department of Justice has requested that the injunction stay in Kansas. 

As stated by a spokesperson of the Department of Education, “Republican elected officials continue to fight to block their own constituents from saving money, having their monthly payments cut in half, and receiving relief.” 

In their words, the Biden administration “will not stop vigorously defending the SAVE Plan, the most affordable repayment plan in history.”

For students whose student loan payments have been suspended…

The Department of Education will contact the students who have their student loan payments suspended soon. Student loans of those involved will be put into forbearance and will not accumulate any interest. 

Hence, according to the Department of Education, the millions of borrowers under the SAVE plan will owe nothing and be considered up-to-date with their payments. 

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