Student Loan Defaults Expected to Spike with No Relief in Sight
Court Temporarily Blocks Biden Administration’s Latest Debt Relief Plan This week, a federal judge granted a temporary restraining order against the Biden administration’s student debt relief plan, which may lead to record-high student loan defaults. The...
Student Loan Default Rates to Skyrocket if Half of Borrowers Continue Not Making Payments
The three-year COVID payment pause offered a lifeline for millions of student loan borrowers and a reprieve from student loan defaults. However, the repeated extensions and the subsequent one-year “on-ramp” period created significant confusion and...
Court Extends Block on SAVE Plan
The 8th Circuit Court of Appeals has updated its temporary stay of the Saving for a Valuable Education (SAVE) income-driven repayment (IDR) plan and issued a preliminary injunction formally blocking SAVE. The Department of Education will place all borrowers currently...
SAVE Program Forbearance Period Won’t Count Towards Forgiveness
Following several court decisions, the Education Department has suspended the SAVE program and placed SAVE borrowers into an administrative forbearance period. The SAVE program forbearance period will not count towards forgiveness, including under the SAVE plan and...