SCOTUS Rejects Biden Administration’s Effort to Restart the SAVE Repayment Plan
By Hugh T. Ferguson, NASFAA Managing Editor
The U.S. Supreme Court (SCOTUS) on Wednesday rejected the Biden administration's effort to reinstate provisions of the Saving on a Valuable Education (SAVE) repayment plan while legal challenges to the program play out.
According to the brief ruling SCOTUS “expects that the Court of Appeals will render its decision with appropriate dispatch.”
The decision from SCOTUS follows the 8th U.S. Circuit Court of Appeals preliminary injunction, which extended that court’s initial order, and fully blocked the SAVE plan. That decision has prevented ED from providing loan forgiveness under SAVE, not charging borrowers accrued interest, and further implementing the programs’s payment-threshold provisions.
Now the case heads back to the 8th U.S. Circuit Court of Appeals where the appeals process will continue to play out.
Earlier this week the Department of Education (ED) provided updated guidance on SAVE and income-driven repayment plans which includes details on how a borrower can apply for an IDR plan or consolidate loans by submitting a PDF application, even though processing of these forms are currently delayed or completely paused.
However ED noted that further developments are possible while the SAVE Plan remains under litigation.
Stay tuned to Today’s News for the latest updates on the SAVE program.
Publication Date: 8/29/2024
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