A revised income-driven repayment plan has been implemented for federal student loans.
On Wednesday, the Education Department restored certain student loan programs after modifying them according to a previous court order.
The previous presidential administration implemented an income-driven college repayment program called Saving on a Valuable Education (SAVE), which offered partial student loan forgiveness based on certain income brackets. The 8th Circuit Court blocked its implementation, calling it federal overreach, leading the Biden administration to pause applications for the program.
Federal officials removed the application site for the SAVE program last month, but also removed other income-driven repayment programs along with it, such as the Public Service Loan Forgiveness Program. The American Federation of Teachers sued which ultimately to the restoration of the other loan programs after modifying some of their details.
“A federal appeals court struck down another one of the Biden Administration’s illegal efforts to transfer student loan debt to taxpayers. In response, the Trump Administration substantially revised the income-driven repayment plan application to conform with the ruling,” acting Education Under Secretary James Bergeron said.
“Our team was able to relaunch this application within weeks, ensuring borrowers have access and the ability to access all legal repayment plans,” he added.
As the Lord Leads, Pray with Us…
- For Undersecretary James Bergeron as he oversees federal student loan programs.
- That the restoration of these repayment plans offers greater financial flexibility to American citizens.
- For the president and administration officials as they shape the education policies of the federal government.
Sources: Reuters, The Hill, Washington Post
