"The government is required to grant immediate relief to borrowers eligible for loan discharge and begin implementing the other provisions of the SAVE Final Rule. However, the government has made clear in court filings, public statements, website language, and borrower-specific denials or non-processing, that it is refusing to administer relief required under operative law and regulation."
"The SAVE plan, created by former President Joe Biden and intended to allow cheaper payments and a shorter timeline to debt relief, has been blocked since the summer of 2024 due to litigation. However, a court declined to rule on President Donald Trump's proposed settlement that would have eliminated SAVE, and the borrowers said in their lawsuit that it means the department should process debt relief for eligible borrowers through the plan."
Four student-loan borrowers filed a lawsuit against the Department of Education seeking immediate debt relief for borrowers enrolled in the SAVE repayment plan. The SAVE plan, designed to provide cheaper payments and faster debt relief, has been blocked since summer 2024 due to litigation. A court recently declined to rule on President Trump's proposed settlement that would have eliminated SAVE. The borrowers argue the department must process debt relief for eligible borrowers under current law and regulations. One plaintiff, Heather Havens, is eligible to have two loans discharged after making 303 of 300 required payments but has not received relief.
#save-repayment-plan #student-loan-debt-relief #education-department-lawsuit #loan-discharge-eligibility
Read at Business Insider
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