Millions of SAVE borrowers are being patient as the legal battle continues. (iStock )
Despite President Biden’s request to reinstate the SAVE plan that the administration created to help student loan borrowers make fewer monthly payments, the Supreme Court declined to do so on Wednesday. Lower courts blocked the plan earlier this summer after legal challenges were brought by Republican Party-led states.
The court’s decision had no immediate effect on the millions of borrowers enrolled in the plan, but it blocked new applications. When the first freeze came, borrowers who were part of the plan automatically received an interest-free forbearance. During this grace period, borrowers do not have to make monthly payments.
The fate of the plan remains to be seen as legal battles continue in lower courts. Alaska, South Carolina and Texas have all asked for a partial freeze on the program while they pursue their respective lawsuits.
Although the Department of Education can no longer offer the SAVE plan to new borrowers, the Biden administration said in a statement that they plan to continue fighting for student loan forgiveness.
“The Biden-Harris Administration will continue to aggressively defend the SAVE plan in court and use all available tools to reduce the burden of student loans on borrowers across the country,” the statement said.
If you have private student loans, federal relief unfortunately does not apply to you. If you want to lower monthly payments and ease the burden of student loan debt, consider refinancing your student loans. Check the rates you qualify for via the Credible online marketplace.
PAYE VS. SAVE: COMPARE YOUR OPTIONS
Biden-Harris Admin is providing more than $80 million to better educate low-income students
In an effort to continue providing educational resources, the Biden-Harris administration recently announced that more than $80 million will be given to 26 different grantees to support college readiness programs. The idea is to help low-income students be better prepared to attend college.
The scholarships fall under the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) program. The goal of the program is to increase the number of students from underserved communities who attend colleges or trade schools.
“GEAR UP helps communities come together and prepare young people early for a college education,” said U.S. Secretary of Education James Kvaal. “The Biden-Harris Administration has fought to help all students achieve their college dreams and live better lives.”
These scholarships are six- or seven-year grants that states, schools and universities can use to provide services to high school students from low-income families who are unsure about attending a postsecondary school.
If you can qualify for a student loan refinance at a lower rate than you are currently paying, there are some downsides to refinancing. You can use Credible to compare student loan refinancing rates from multiple private lenders all in one place.
STUDENT LOAN DEBT HAS INCREASED 430% SINCE 2003 – HOW TO REDUCE YOUR DEBT
Percentage of Americans nearing retirement and student loan debt has increased by 500%
Student loan debt is a widespread problem in America, affecting everyone from newly graduated high school students to parents taking out loans for their college-aged children. More and more Americans nearing retirement are still struggling with student debt, even after years of repaying it.
The percentage of Americans who are about to retire and still have student debt has increased more than 500% in the past two decades, according to a New America study. In 2022 alone, 3.5 million Americans over 60 owed $1.25 billion in student loan debt.
Many seniors still have student loan debt for a variety of reasons. For some, the debt is the original debt they took on when they went to college, but others are dealing with debt after taking out federal Parent PLUS loans for their children going to college. Some have also co-signed loans that their children cannot afford, leaving them saddled with debt.
A handful of seniors in the report said they have had student debt for at least 15 years, if not longer. Seniors still struggling with these debts also have higher default rates, the report found.
To see what you’d pay for a private student loan — with or without a cosigner — you can go to Credible to view a rate table that lets you compare fixed and variable rates from multiple lenders without impacting your credit score.
PARENTS ARE HEAVILY AVOIDING LOANS TO PAY THE COSTS OF STUDY: STUDY
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