The American Education Department has announced a temporary suspension in payment for student loan borrowers enrolled under the Biden administration’s SAVE repayment program due to rising legal challenges.
Miguel Cardona, Secretary of Education confirmed that borrowers will be placed in zero interest forbearance, ensuring no interest accumulation on their loans during the judicial process. The debt forgiveness program “SAVE” aims to provide reduced scheduled payments and swift debt forgiveness for borrowers with smaller balances.
The conservative State opposes the Biden administration SAVE program. A federal appeal Court in Missouri has blocked the plan, which has admitted nearly eight million individuals.
The United States Education Board has rolled out $5.5 billion in student debt for over 414,000 lenders through Biden’s SAVE program. Expert analysis predict, increasing court challenge to the administration’s plans for widespread debt cancellation.
