Biden Administration Freezes Student Loan Repayments Following Court Rulings

Washington Examiner

After federal judges in Kansas and Missouri sided in favor of Republican attorneys general by blocking parts of President Joe Biden’s student loan repayment program, the Department of Education announced it is freezing monthly student loan payments and interests of 3 million borrowers.

The Saving on a Valuable Education plan, better known as SAVE, determines a borrowers’ monthly payment based on their earnings and family size. There are more than 8 million people signed up for the plan and 4.5 million of them qualify for $0 monthly payments because of their low earnings.

On July 1, the Department of Education was going to implement payment reductions, with many borrowers seeing their payments being cut in half. That measure was blocked by Kansas U.S. District Judge Daniel D. Crabtree.

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