The Biden administration is pausing student loan payments for eight million borrowers enrolled in its new repayment plan, known as SAVE, after a federal appellate court issued a ruling temporarily blocking the program.
“Borrowers enrolled in the SAVE plan will be placed in an interest-free forbearance while our administration continues to vigorously defend the SAVE plan in court,” Miguel Cardona, the secretary of education, said in a statement.
“The Department will be providing regular updates to borrowers affected by these rulings in the coming days.”For now, borrowers are unable to apply to the SAVE repayment plan, and applications for other income-driven repayment plans are also unavailable.
The U.S. Court of Appeals for the Eight Circuit, based in St. Louis, granted a request by Missouri and other Republican-led states for an administrative stay, which prevents the Biden administration from “implementing or acting pursuant” to the rule that created the SAVE program last summer, according to the court filing.
Persons:
Biden, ” Miguel Cardona, Louis, ”
Organizations:
U.S, Appeals, Republican
Locations:
St, Missouri