According to Straight Arrow News, these rulings have effectively put a halt to the further execution of the Student Aid Verification for Eligibility (SAVE) program.
The SAVE program, in operation for almost a year, ties a borrower's monthly payment to their income. The now-blocked second phase of the plan aimed to lower monthly payments from 10% of a borrower's discretionary income to a more manageable 5%.
Moreover, the rulings have also suspended any additional debt cancellation for individuals who initially took out smaller loans and have been making payments for over a decade. Despite these setbacks, the Biden administration remains steadfast in its commitment to students and borrowers.
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White House Press Secretary Karine Jean-Pierre affirmed this commitment, stating, "Today's rulings won't stop our administration from using every tool available to give students and borrowers the relief they need."
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The SAVE Plan, introduced by Biden in 2022 as part of a larger $430 billion initiative to fulfill a campaign promise, sought to cancel up to $20,000 in debt for as many as 43 million Americans. However, this initiative was thwarted by the conservative-majority U.S. Supreme Court in June 2023.
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The rulings underscore the ongoing challenges faced by the Biden administration in implementing its student debt relief plan, a cornerstone of its campaign promises. Despite the administration's pledge to continue fighting for student and borrower relief, the future of the SAVE program remains uncertain.
