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Student loan payments suspended for about 3 million people | NewsRadio 740 KTRH

Student loan payments suspended for about 3 million people | NewsRadio 740 KTRH

Student loan payments suspended for about 3 million people | NewsRadio 740 KTRH

The Biden administration plans to put about three million student loan borrowers on a payment pause that could last for months.

Joe Biden’s student debt reform idea, known as the SAVE Plan, has been the focus of two Republican-led lawsuits claiming the Biden administration has overstepped its authority through the plan’s ideas. Last week, court rulings from Kansas and Missouri came down in favor of the states, stating that the Biden administration could not move forward with further implementation of the SAVE Plan.

The Department of Education can no longer cut payments to borrowers as originally anticipated starting July 1. The payment cuts were expected to be reduced from 10% of borrowers’ discretionary income to 5% for those with college loans.

The SAVE Plan was launched in August 2023 and is used by eight million people. The pause in payments would apply to just under half of those eight million.

Biden continues to promote student debt cancellation while campaigning, yet only 3% of the debt relief issued by the Biden administration has been through the SAVE Plan.