June 25, 2024 – SDS Ready to Assist Borrowers Amid Changes to Student Loan Repayment Plans
In light of recent federal court decisions impacting the Biden administration's student loan repayment plan, Student Debt Solutions wants to assure borrowers that we are here to help them navigate these changes and understand their repayment options.
On Monday, federal courts in Kansas and Missouri issued rulings temporarily blocking key aspects of the Saving on a Valuable Education(SAVE) repayment plan. These decisions stem from lawsuits brought by Republican state attorneys general, challenging the legality of the plan. As a result, some provisions aimed at lowering student loan payments and providing debt cancellation have been put on hold.
What This Means for Borrowers:
The SAVE (Saving on a Valuable Education) plan is designed to make student loan repayment more manageable by reducing monthly payments and shortening the timeline for loan forgiveness. Some benefits of the SAVE plan are already in effect and borrowers can still enroll for the plan. However, the second phase of SAVE was scheduled to be released July 1, 2024 and will no longer be implemented.
Here is how the following court rulings have impacted the second phase of the roll-out of the SAVE repayment plan:
Missouri Court Ruling: Temporarily halts further debt cancellations under the SAVE plan while litigation continues. To date, over $5.5 billion of student loan debt has been canceled due to SAVE provisions. However, no further cancellation will occur for borrowers as the legal process continues.
Kansas Court Ruling: This decision prevents the implementation of provisions to lower payments for certain borrowers until the case is resolved. Student loan borrowers who are currently enrolled in SAVE will not have their current repayment plan change, but they will not see reduced payments due to the types of federal student loans they have.
Student Debt Solutions is Here to Help
We understand that these developments can create uncertainty and confusion for borrowers. Student loan servicers may be feeling burdened and confused due to these legal challenges. That’s why Student Debt Solutions is committed to providing the support and resources you need during this time.
Our trained staff are experts in student loan repayment options and are available to assist you in understanding how these changes may impact your specific situation. We encourage all borrowers to reach out to us for personalized advice and guidance.
Contact Us
If you have any questions or need assistance, please contact our team at support@myresolvent.com. While logged on, you can also use the chat feature to reach us. Our trained staff are experts in student loan repayment options and are available to assist you in understanding how these changes may impact your specific situation.