The Education Department will put millions of people in the most expensive repayment plan if they don’t exit Save, but the process has had snags.
The latest ruling, issued unanimously by a panel on the Ninth Circuit Court of Appeals, came after the Trump administration asked for an additional 18 months to review the newest claims.
Federal student loan defaults have reached a record high. Nine million borrowers have defaulted, which is up from 5.3 million in June of last year. NewsNation's Nick Smith reports.
Federal student loan defaults have reached a record high. Nine million borrowers have defaulted, which is up from 5.3 million in June of last year. NewsNation's Nick Smith reports. Start your day with "Morning in America," NewsNation's live three-hour national morning newscast hosted by Markie Martin. Weekdays starting at 6a/5C. #MorningInAmerica NewsNation is your source for fact-based, unbiased news for all Americans.
More than 9 million borrowers are behind on payments, which exploded from 5.3 million in June of last year.
On July 1, the Biden-era Saving on a Valuable Education plan (better known as the SAVE plan) will end; limits will be imposed on how much graduate students and parents (through the Parent PLUS loans) can borrow in federal student loans, and a graduate borrowing program will end. #Studentloans #Saveplan #Collegeloandebt
Federal student loan borrowers enrolled in automatic payments will be eligible for a 1% interest rate reduction beginning July 1.
The department said borrowers who are already enrolled in an auto repayment plan do not need to take any further action and will automatically see their interest rates lowered by one percent beginning July 1.
The Trump administration wants to jumpstart student loan repayment, with federal student loan debt approaching $2 trillion.