Handing the Biden administration an unexpected win amidst a legal back-and-forth, a court over the weekend agreed to let the Education Department continue implementing the final phases of a student loan repayment plan that will lower people’s monthly bills.
This comes after the department had already begun the process to put 3 million borrowers into a payment pause, a move officials said was necessary to comply with the court’s initial ruling last week to halt the payment cuts. But because of the latest ruling, borrowers enrolled in the SAVE Plan will now go forward with payments at their new rates beginning in July and August, officials said.
The SAVE Plan, dubbed the most affordable plan for borrowers and President Joe Biden‘s hallmark surviving student debt reform effort, is the target of two Republican-led lawsuits that argue the Biden administration has gone beyond its authority in aspects of the plan. Courts in Kansas and Missouri ruled in the GOP states’ favor last week, …