Federal student loan borrowers are currently unable to apply for income-driven repayment plans as the U.S. Education Department reviews a recent court ruling. The Department suspended applications for the SAVE plan, vital to income-driven payments linked to borrower's income, following legal challenges from Republican-led states. These challenges led to the Eighth Circuit upholding an injunction that impacts the repayment plans. Consequently, more affordable repayment options for financially distressed borrowers are inaccessible, affecting not only loan payments but also eligibility for the Public Service Loan Forgiveness program temporarily. Updates will follow as the situation evolves.
The U.S. Education Department temporarily halted applications to income-driven repayment plans, under review due to a recent federal court ruling that affects borrowers' payment options.
With the closure of applications to the SAVE and other income-driven repayment plans, borrowers in financial distress have fewer options for managing their student loans.
#student-loans #income-driven-repayment #federal-court-ruling #biden-administration #public-service-loan-forgiveness
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