The SAVE program resulted in no-payment status for 4.5 million low-income student borrowers
The Biden administration’s new student loan repayment plan faced a setback after a federal appeals court temporarily blocked its implementation.
The court granted a request by several Republican-led states to halt the administration from moving forward with the SAVE program.
This decision comes amid ongoing legal challenges questioning the plan’s legality.
The SAVE program, launched last August, adjusts monthly payments based on borrowers’ income and household size, offering more generous terms compared to previous income-driven repayment options and resulting in no-payment status for 4.5 million low-income borrowers.