A federal appeals court ruled Sunday that a key part of President Biden’s student loan forgiveness plan can resume after a preliminary injunction was placed on the initiative.
The previous injunction on the Saving on a Valuable Education (SAVE) repayment plan said the administration could not reduce monthly payments or forgive some student debt.
The 10th U.S. Circuit Court of Appeals lifted the injunction that would reduce monthly payments, allowing them to drop from 10% of discretionary income to 5% this month.
The administration placed some borrowers in forbearance while legal issues were resolved.
“While we are frustrated by the continued legal challenges brought to limit borrower relief, we are pleased to see the Department of Education take swift and decisive action, placing 3 million borrowers into administrative forbearance,” said Natalia Abrams, president of Student Debt Crisis Center.
About 8 million Americans signed up for the SAVE plan after it was implemented in the fall as part of President Biden’s broader efforts to bring relief to student loan borrowers.
In October, under the plan, the government increased the amount of protected income from 150 percent above federal poverty guidelines to 225 percent. It also means that borrowers who pay the principal balance of their loans monthly are not penalized by the growth in unpaid interest.
—Updated at 1:29 p.m.
This story originally appeared on thehill.com read the full story
