The Republican attorneys general say the department does not have the authority to change loan terms through the plan, according to media reports.
04/03/2024 12:50 P.M.
1 minute read
Eleven states filed suit in federal court to stop the U.S. Department of Education’s implementation of the Saving on Valuable Education (SAVE) income-driven repayment plan, according to a report from Inside Higher Ed.
The state attorneys general argue the department and Biden administration lack the authority to change borrowers’ loan terms, according to the article.
The lawsuit (PDF) states that the SAVE Plan also “hurts the states’ bottom lines and is just another version of the broad-based debt-relief plan that the Supreme Court struck down last summer in Biden v. Nebraska,” it reports.
In January, Biden announced an expedited timeline for the forgiveness component of the SAVE Plan, allowing borrowers to receive relief sooner than initially projected, ACA International previously reported. To qualify for this forgiveness, individuals must be enrolled in the SAVE Plan, have made a minimum of 10 years of payments, and originally borrowed $12,000 or less for their college education. Additional forgiveness is granted for each $1,000 borrowed beyond the initial $12,000, requiring an extra year of payments.
Meanwhile, legislation from U.S. Sen. Jeff Merkley, D-Ore., seeks to codify the SAVE Plan into law, according to a news release. The bill would help protect the loan plan from being changes under future leadership in Washington.
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