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3 Million Student Loan Borrowers Affected as Biden’s SAVE Plan Faces Hurdles: Interest Rates Set to Zero – Payments on Hold

Legal rulings have halted parts of the Biden administration’s SAVE Plan, leading to a temporary forbearance for about 3 million student loan borrowers in July, with ongoing efforts to support and defend the initiative amid system updates and legal challenges.

Legal Challenges Halt Biden’s SAVE Plan, Putting Student Loan Payments on Hold

According to The Hill, millions of student loan borrowers are facing changes because of legal decisions that stopped parts of the Biden administration’s SAVE Plan. This plan, designed to make education more affordable, has hit roadblocks after federal judges issued orders last week. As a result, about 3 million borrowers won’t need to pay their loans in July, as they’ll be in a temporary forbearance with no interest charged.

The judges’ decisions mean the Education Department can’t go ahead with forgiveness and payment reductions as planned under the SAVE Plan. This pause doesn’t affect those who have already had their loans forgiven, amounting to over $5.5 billion in relief. Meanwhile, new applications for income-driven repayment plans and loan consolidations are on hold online while the department updates its systems to follow the court rulings.

READ ALSO: 15 Million Student Loan Borrowers In Limbo: Federal Judges Halt Biden’s SAVE Plan – Uncertainty Abounds!

3 Million Student Loan Borrowers Affected as Biden’s SAVE Plan Faces Hurdles: Interest Rates Set to Zero – Payments on Hold (PHOTO: Forbes)

Biden Administration Stands Firm on SAVE Plan Amid Legal Challenges, Aims to Improve College Affordability

Despite these setbacks, the Biden administration is determined to support the SAVE Plan, which has enrolled over 8 million borrowers since its launch. They argue it’s a critical initiative to fix the broken student loan system and make college more affordable. The administration vows to continue defending the program against legal challenges and push for relief for students and borrowers across the country.

READ ALSO: $500,000 Annual Salary Cap: Walmart’s Bold Move To Boost Employee Morale And Productivity

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