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Court Rulings Disrupt Biden's Student Loan Repayment Plan

Temporary injunctions halt key aspects of the SAVE Plan, causing confusion for millions of borrowers.

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CHAPEL HILL, NORTH CAROLINA - MAY 1: Students  walk on campus at the University of North Carolina on May 1, 2024 in Chapel Hill, North Carolina. The University of North Carolina was the first public university to accept and graduate students in the United States. (Photo by Sean Rayford/Getty Images)
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Overview

  • Federal appeals court allows part of the SAVE Plan to proceed, reducing monthly payments for some borrowers.
  • Three million borrowers placed in forbearance due to ongoing legal challenges.
  • Republican-led states' lawsuits argue Biden administration overstepped its authority.
  • Borrowers face uncertainty as Education Department navigates conflicting court orders.
  • Advocates warn of chaos in the student loan system amid frequent policy changes.