Released: August 29, 2024

The uncertain future of student loan repayment explained

Source: Danielle Douglas-Gabriel, Washington Post (Paid Registration)

President Biden launched the Saving on a Valuable Education program, commonly known as Save, last fall as millions of Americans resumed student loan payments. The plan caps payments for undergraduate loans to 5 percent of income above that 225 percent threshold, instead of 10 percent.

An injunction, in a lawsuit brought by Republican-led states, has barred the Biden administration from moving forward with the repayment plan. The administration has vowed to fight for the program and will pause the collection of loans for the millions of people enrolled in the plan until the litigation concludes.

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