At Extreme Investor Network, we understand the importance of staying up-to-date on the latest developments in personal finance news. Recently, a federal appeals court decision regarding President Joe Biden’s student loan relief plan has caught the attention of many borrowers.
In a ruling by the 10th Circuit U.S. Court of Appeals, a key provision of Biden’s Saving on a Valuable Education (SAVE) plan has been allowed to resume, despite legal challenges against it. This decision is seen as a significant win for the Biden administration, as the SAVE plan has been hailed as a major accomplishment in providing relief to student loan borrowers.
Under the SAVE plan, around 8 million borrowers have already signed up for the new income-driven repayment plan, where many only pay 5% of their discretionary income towards their debt each month. Additionally, those making $32,800 or less have a $0 monthly payment. This is a stark comparison to other income-driven repayment plans where borrowers typically pay 10% or more of their discretionary income.
However, it’s important to note that student loan forgiveness under the SAVE plan is still on hold due to a separate injunction issued by a federal judge in Missouri. This means that the Biden administration is currently unable to forgive people’s student debt under the plan. Despite this setback, the Department of Justice is expected to appeal the decision in Missouri.
Overall, the SAVE plan has already provided $4.8 billion in debt relief to 360,000 borrowers by mid-April, showcasing the impact it has had on those struggling with student loan debt. Stay tuned to Extreme Investor Network for more updates on personal finance news and valuable insights to help you navigate your financial journey.