Biden Administration Issues New Guidance on Student Loan Programs Amid Legal Challenges

Recent court rulings impact the implementation of the SAVE plan, affecting loan forgiveness and repayment terms for millions of borrowers.

The Education Department released updates on student loan forgiveness, repayment plans, and loan consolidation.
Court injunctions have temporarily blocked parts of the SAVE plan, particularly affecting loan forgiveness provisions.
The 10th Circuit Court of Appeals has allowed reduced payments under the SAVE plan to proceed, pending further legal developments.
Online applications for income-driven repayment plans and loan consolidation are currently down but can be submitted via PDF.
The status of student loan forgiveness remains uncertain as the Education Department seeks clarification and appeals ongoing injunctions.