Dec. 9 (UPI) — The U.S. Department of Education on Tuesday announced plans to lift a pause on certain student loan repayment plans as part of a proposed settlement with Missouri, which sued the government over former President Joe Biden’s attempts at debt forgiveness.
The settlement, if approved, would end the Saving on a Valuable Education, or SAVE, Plan launched by the Biden administration in 2023. The plan replaced the Revised Pay As You Earn Plan and reduced interest and provided a path for loan forgiveness after 10 years of repayment.
Missouri sued the Biden administration over the plan, saying he didn’t have the authority to establish it without congressional authorization.
Under the proposed agreement, the Education Department would not enroll new borrowers in the SAVE Plan and would move all current SAVE enrollees into a new repayment plans.
“For four years, the Biden administration sought to unlawfully shift student loan debt onto American taxpayers, many of whom either never took out a loan to finance their postsecondary education or never even went to college themselves, simply for a political win to prop up a failing administration,” said Nicholas Kent, undersecretary of education.
If approved by the court, the Education Department said the agreement would require those enrolled in the SAVE Plan to choose a new repayment plan and begin making payments.
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