The US th Circuit Court of Appeals temporarily blocked new provisions that were meant to be implemented in July which would make it easier for borrowers to get their debts erased when theyre misled or defrauded by their college under a rule known as borrower defense to repayment . The rule has been in place for decades but the lawsuit targets new provisions including one allowing for automatic debt discharges a year after a colleges closure date and another that bans colleges from requiring borrowers to agree to mandatory arbitration which are now blocked . Another lawsuit challenges the Biden administration’s student loan forgiveness program which was struck down by the Supreme Court in late June . This latest legal challenge does not appear to immediately impact the Biden administrations new incomedriven repayment plan known as SAVE Saving on a Valuable Education which launched last week . Once the SAVE plan is fully phased in which is expected to happen next year some borrowers could see their monthly bills cut in half and remaining debt canceled after making at least years of payments . The Department of Education says the lawsuit is nothing but a desperate attempt from right wing special interests to keep hundreds of thousands of borrowers in debt even though these borrowers have earned the forgiveness that is promised through incomedrven repayment plans . In fact loans in repayment could have potentially already been eligible for forgiveness for many of the loans could have been eligible to be eligible for a number of loans analyzed could have possibly already be eligible . In a separate lawsuit filed last week they say they could have already been forgiven for forgiveness . The decision does not seem to impact the new SAVE plans. s DJ Judd contributed to this report. s J. Judd. s s DJ J.J. s . s DJ . Judd contributed. to this Report. s to thisReport. s
Biden’s student loan policies continue to face legal challenges . Biden’s policies are being challenged
