The Biden administration plans to put around three million student loan borrowers on a payment pause that could last for months.
Joe Biden's student debt reform idea, known as the SAVE Plan, has been the focus of two Republican-led lawsuits that claim the Biden administration has overstepped it's authority through the ideas for the plan. Rulings came down last week from courts in Kansas and Missouri who ruled in favor of the states, stating that the Biden administration couldn't move forward with further implementation of the SAVE Plan.
The Department of Education now cannot cut payments for borrowers as originally anticipated starting July 1. It was expected that payment cuts would've decreased from 10% of a borrowers' discretionary income down to 5% for those with undergraduate loans.
The SAVE Plan was rolled out August 2023 and is used by eight million people. The payment pause would apply to just under half of those eight million.
Biden continues to promote canceling student debt while campaigning, however, only 3% of the debt relief issued by the Biden administration has been through the SAVE Plan.