"We are disappointed in this decision," an Education Department spokesperson said in a statement, "particularly because lifting the injunction would have allowed for lower payments and other benefits for borrowers across the country. The Department will work to minimize further harm and disruption to borrowers as we await a final decision from the Eighth Circuit."
Solicitor General Elizabeth Prelogar wrote in a response to the Supreme Court that blocking the SAVE plan could cost borrowers significantly. The Education Department would be forced to recalculate millions of borrowers' payments, requiring a forbearance period during which interest would not accrue. Borrowers would not make any progress toward forgiveness through Public Service Loan Forgiveness or income-driven repayment plans.
The Supreme Court said it would not override a ruling from the 8th Circuit Court of Appeals that blocked the plan in its entirety on July 18 in response to a lawsuit led by Missouri's attorney general, pending a final court decision.
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