Oh Boy! Fed Courts Putting a Brake on Biden’s Student Loan Repayment Plan

Fancy a little bit of courtroom drama? Well, brace yourself, because we’ve got some hot-off-the-press updates on President Joe Biden’s student loan plan, otherwise known as the Saving on a Valuable Education (SAVE) plan. Long story short: a couple of pesky federal court rulings have thrown a little bit of a spanner in the works. Yes, you heard that right!

Ever wondered what it would be like to graduate without student loans? Yeah, me too. It’ll be like having some extra cheese on your nachos! That was the idea behind the SAVE plan. Sadly, what was supposed to be a smooth sailing ride for about 8 million enrolled borrowers now looks like a sail boat stuck in the doldrums of legal hurdles.

As of Monday, two separate lawsuits originating from Kansas and Missouri have frozen a few elements of the SAVE program. But don’t go ahead and start a SAVE-gone-too-soon hashtag just yet, the larger part of the program stands as healthy as ever.

Where Does the SAVE Program Stand Now?

With the court mess rattling the cages, the forgiving character of SAVE seems to be in a bit of jeopardy. Or, call it a timeout if you’d like to be optimistic. Larger part of the program might still be intact, but it’s safe to say that the future of accelerated forgiveness under SAVE is hung up like a chandelier for now.

Kansas and Missouri have other concerns about SAVE though. The recent suspensions in court have paused some key perks of the program, like cutting payments for undergraduate loans in half, and lowering payments for those heroically burdened with both graduate and undergraduate debt.

But hey, don’t forget the silver linings! Borrowers can still enjoy a few features of SAVE, like those sweet interest-free charges or keeping the payments at a comfy 10% of their disposable income. Plus, remember, if you’re already footloose from your student debt thanks to SAVE, these court decisions won’t affect you!

So, what’s the way forward?

Despite the court injunctions, all is not lost; at least not yet. The White House has announced its plans to appeal against these rulings because, let’s face it, a little pushback never hurt anyone, right?

Beyond the appeal, there’s another plan in the works which could save us from the student loan dragon. It’s still in the rulemaking process and if approved, could result in up to $150 billion in debt being written off. But as the saying goes, “it’s not done till it’s done.” And this plan has a lot of ground to cover before becoming a reality.

Let’s Talk Student Loan Refinancing

In the meanwhile, why not consider some nifty refinancing options while you wait for the dust to settle? Remember, time waits for nobody, not even student loans. There are a bunch of lenders with competitive rates and flexible terms that can help you reduce the weight of your student loans.

• Test the waters with SoFi, Earnest, Credible, Splash Financial, and ELFI – Get pre-approved in just a blink.
• Enjoy APRs as low as 3.99% with autopay and flexible repayment terms ranging from 5 to 20 years.
• There’s no harm in some added flexibility – no origination fees, no prepayment penalties, and even the option to skip a payment!

To wrap it up, nothing is set in stone with the SAVE plan and its holdbacks yet. In the meantime, why not make the most of the student loan repayment options currently available?

Stay tuned, stay informed, and cheer on. Maybe soon we’ll be celebrating a student loan-free life just like we celebrate those nights when we manage to cook without setting off the smoke detector!