Student Loan Update: Biden Admin Puts Loans on Hold After Court Ruling

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Student Loan Update: Biden Admin Puts Loans on Hold After Court Ruling
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Under SAVE, more than 20 million borrowers would have seen lower monthly payments or full forgiveness of their debt.

A federal appeals court temporarily blocked a key part of President Joe Biden's student loan forgiveness plan, ruling that the Saving on a Valuable Education plan should be put on hold. But on Thursday, the St. Louis-based 8th Circuit Court of Appeals blocked the plan from moving forward.In response to the ruling, the White House said there could be 'devastating consequences' for student loan borrowers.

SAVE, which is a type of income-based repayment plan, lowered monthly payments for certain borrowers and allowed people with original loan balances of $12,000 or less to have their debt cleared after 10 years.

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