With Biden's SAVE Plan on Hold, What's Next for Student Debt Relief?
Summary from the AllSides News Team
The future of the Biden administration’s Saving on a Valuable Education (SAVE) loan repayment plan is uncertain after two federal judges temporarily blocked parts of the program earlier this week.
The Details: The rulings restrict the Biden administration's authority to forgive student debt under the program and halt the proposed lowering of borrowers' payments on the plan until the lawsuits are resolved.
For Context: SAVE is an income-driven repayment program that aims to reduce the financial strain of student loan repayments on borrowers by reducing borrowers' monthly payments to 5% of their discretionary income, down from the current 10%. Some borrowers had already seen their loans forgiven under this plan. Parts of the program that were intended to come into effect shortly would have recalculated future payments at less than half of what they currently are.
How the Media Covered It: Some Wednesday analysis coverage in business outlets focused on the consequences for borrowers, and some analyses in D.C.-focused outlets discussed the politics surrounding the issue. Some coverage appeared potentially sympathetic to loan repayment assistance; The Washington Post (Lean Left bias) called the SAVE plan “popular,” and Forbes (Center bias) prominently noted, “borrower advocates warned that the decision [to limit the program] could lead to chaos in the student loan system.” Meanwhile, The Daily Caller (Right bias) and the Washington Examiner (Lean Right bias) highlighted that the judges were “Obama-appointed,” thereby making their rulings appear less political. This summary was developed with the help of AllSides' AI technology.
Featured Coverage of this Story
From the Center
Biden’s new student loan relief plan is on pause. Here’s what borrowers need to know
Cody Gude was counting the seconds until July when his monthly student loan payment was scheduled to drop to $100 from $200.
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“I could breathe,” the 35-year-old Tampa, Florida, resident said.
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A pair of federal judges have hit the brakes on President Biden’s latest student loan repayment plan, signaling that the program is at risk of being overturned and leaving millions of borrowers in a state of panic.
Biden launched the Saving on a Valuable Education program, commonly known as Save, last fall as millions of Americans resumed student loan payments after a pandemic-triggered hiatus of more than three years. The new plan offered lower monthly payments and a faster path to loan cancellation. More than 8 million people are enrolled, with debts...
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President Joe Biden‘s plans to cancel student loan debt have been partially blocked thanks to a pair of court rulings, but the matter remains alive for both sides in the 2024 election.
Responding to lawsuits filed by a pair of Republican attorneys general, federal judges in Missouri and Kansas ruled this week that Biden’s Saving on a Valuable Education program cannot be fully implemented, temporarily pausing major elements until the case is decided.
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