Millions of SAVE Plan borrowers are in forbearance as the legal battle continues. (iStock )
The Supreme Court on Wednesday rejected President Biden's request to reinstate the government-created SAVE Plan, which allows student loan borrowers to reduce their monthly payments. Lower courts blocked the plan earlier in the summer after Republican-led states filed suit.
The court's decision did not immediately affect the millions of borrowers in the scheme, but it did block new applications. Borrowers who were in the scheme at the time the initial block was made automatically entered an interest-free grace period during which they did not have to make monthly payments.
The fate of the plan remains unclear as the legal battle continues in lower courts. Alaska, South Carolina, Texas All are seeking a partial block on the program while they fight their respective legal battles.
While the Department of Education can no longer offer the SAVE Plan to new borrowers, the Biden administration said in a statement that it will continue to fight for student loan forgiveness.
“The Biden-Harris Administration will vigorously defend the SAVE Plan in court and continue to pursue every tool available to relieve student loan burdens for borrowers across the country.” The statement said:.
Unfortunately, if you have private student loans, you're not eligible for federal relief. If you want to lower your monthly payments and ease the burden of your student loan debt, consider refinancing your student loans. Check the online marketplace Credible to see what interest rates apply to you.
PAYE VS SAVE: Comparing your options
Biden-Harris Administration provides more than $80 million to improve college readiness for low-income students
The Biden-Harris Administration will continue to provide educational resources Recently Announced More than $80 million will be awarded to 26 grant recipients to support college prep programs aimed at helping low-income students be better prepared for college.
The grant is Early Awareness and Preparation for Undergraduate Studies (GEAR UP) ProgramThe goal of the program is to increase the number of students from disadvantaged communities attending college or university.
“GEAR UP helps communities come together to get an early start on preparing young people to attend and succeed in college,” said U.S. Under Secretary of Education James Kvar. “The Biden-Harris Administration has fought to help all students achieve their college dreams and get a better shot at life.”
These grants are six- or seven-year grants that states, schools and universities can use to serve middle and high school students from low-income families who are unsure about attending a higher education institution.
If you can refinance your student loans at a lower interest rate than you’re currently paying, there’s little downside to refinancing. Credible lets you compare student loan refinance rates from multiple private lenders in one place.
Student loan debt has increased 430% since 2003 – here's how to reduce it
The percentage of Americans entering retirement with student loan debt has increased by 500%
Student loan debt is a pervasive problem in America, affecting everyone from recent high school graduates to parents taking out loans for their college-aged children. A growing number of Americans nearing retirement are still struggling with student loan debt, even after years of paying it off.
The percentage of Americans approaching retirement who still have student loan debt has increased by more than 500% in the past 20 years. New American Studies In 2022 alone, 3.5 million Americans over the age of 60 will owe $1.25 billion in student loan debt.
Many seniors still have student loan debt for a few different reasons. For some, the debt is original debt they took out while they were in college, but others are in debt after taking out a federal Parent PLUS loan for a child attending college, or because they cosigned for loans their child can't repay.
Several of the seniors in the report said they've had student loan debt for at least 15 years, and in some cases longer. Default rates are also higher among seniors who are still dealing with this debt, the report found.
To see how much you'll be paying for private student loans (with or without a cosigner), head over to Credible for an interest rate chart that lets you compare fixed and variable interest rates from multiple lenders without affecting your credit score.
Parents rely heavily on debt to pay for college: Survey
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