Millions of student loan borrowers are in limbo this week after a fresh lawsuit was filed Tuesday to block new student loan forgiveness plans the Biden administration expected to start this fall.
The latest lawsuit affects the SAVE program, or Saving on Valuable Education, an income-driven repayment program that would reduce monthly payments for certain borrowers. For now, those roughly 8 million debt holders have been placed into an interest-free forbearance, but it’s unclear what will happen next.
The lawsuit is the latest legal challenge to Biden’s attempts at delivering debt relief before the November election. The U.S. Supreme Court previously knocked down his proposed one-time student loan forgiveness program.
“It’s very frustrating for people, it’s maddening,” said Beverly Brown Ruggia, the financial justice program director at New Jersey Citizen Action, in an interview with NJ Spotlight News. She said that “people are very frustrated, and it is confusing, and in some cases people who shouldn’t be billed are receiving bills.”
Each borrower’s situation is unique, making it more difficult to stay up to date, Brown Ruggia said.
“The most important thing is that student borrowers stay in touch with their services and that they continue to look to student aid,” she said.
For more information check out the U.S. Department of Education website for student loans.
