Why is the ‘Plan B’ student loan forgiveness plan on hold?
In September, Republicans petitioned a federal court in Georgia to place this student loan plan on hold.
Typically there’s a 60-day review period after a rule goes live before it can be acted on.
Republican-led states quickly petitioned to have the plan blocked again.
What about SAVE?
Is it still on hold?
The Biden administration’sSaving on a Valuable Education program, or SAVE, has been on hold for months.
SAVE is an income-driven repayment plan, or IDR, that was first launched in 2023.
Among IDRs, it offers some of the best student loan benefits for borrowers, including low monthly payments.
If you’re enrolled in SAVE,your payments are on holduntil the legal challenges are resolved.
Is there anything borrowers can do to prepare?
Right nowElaine Rubin, a student loan and policy expert with Edvisors, suggests preparing for all repayment scenarios.
“Borrowers should not make decisions based on the expectation of forgiveness.
Even if forgiveness is approved, not all borrowers will qualify for forgiveness,” Rubin said.
There’s one exception.
You’ll need to fill out the online PDF and submit it to your borrower.
Expect this process to take several months.
Expect final court rulings and likely appeals cases in the coming months.
When a ruling is finalized, expect an update from the Department of Education explaining your options.
Read more:My Student Loan Payments Are Paused Due to SAVE’s Legal Challenges.
