This week, a federal appeals court issued a preliminary injunction blocking the SAVE plan, a key student loan program from the Biden administration. The SAVE plan, introduced last fall, offers lower payments, interest subsidies, and potential forgiveness in as little as 10 years. However, Republican-led states challenged the program’s legality, leading to the current injunction from the 8th Circuit Court of Appeals, which may result in the plan being struck down. The injunction replaces a previous temporary stay and extends administrative forbearance for the over eight million borrowers enrolled in SAVE.
