The Biden administration has requested the Supreme Court's permission to proceed with reducing monthly student loan payments for approximately three million borrowers enrolled in the SAVE (Saving on a Valuable Education) student loan repayment plan. This program has faced legal challenges from GOP-led states, with one group urging the high court to maintain a partial block on the program while litigation unfolds.
Despite these challenges, a Denver-based appeals court recently allowed the Biden administration to resume implementing the program, which had been temporarily paused due to legal disputes. The administration argues that blocking the program would cause significant harm to borrowers, leading to confusion about their loan status.
Solicitor General Elizabeth Prelogar emphasized that many borrowers have already benefited from reduced monthly payments and that reversing the program would require extensive recalculations and system changes, causing further delays and complications.
The Biden administration views SAVE as a crucial student loan policy, offering significant benefits to low-income borrowers, including lower monthly payments and a faster path to loan forgiveness compared to other repayment plans. Since its inception, approximately 8 million individuals have enrolled in SAVE, with 4.6 million having a $0 monthly payment.
While borrowers currently enrolled in SAVE can still access its benefits during the legal proceedings, further debt forgiveness under the plan has been halted by a lower court in a separate case. The program allows borrowers to become eligible for loan forgiveness after making a specified number of payments.
