President Biden's new student loan repayment plan, which aimed to reduce borrowers' monthly bills, faced setbacks after two federal judges temporarily blocked some of its benefits, leaving millions of borrowers in uncertainty.
The preliminary injunctions suspended parts of the program known as SAVE, preventing the Biden administration from implementing the planned reduction in borrowers' monthly bills by half and pausing debt forgiveness for SAVE enrollees until the legal disputes are resolved.
The SAVE program, designed to tie borrowers' monthly payments to their income and household size, offers debt cancellation after a certain period, yet faced challenges due to its more generous terms compared to previous repayment plans like REPAYE.
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