A federal appeals court has dealt a setback to President Joe Biden's student loan repayment plan, known as SAVE (Saving on a Valuable Education). The court sided with Republican-led states seeking to halt further implementation of the plan until their legal challenge is resolved.
The Department of Education had already paused the SAVE plan last month due to ongoing litigation, so the recent ruling does not immediately impact the 8 million borrowers currently enrolled in the program. These borrowers are currently in an interest-free forbearance period, exempt from making monthly student loan payments.
