Federal judge blocks Trump-era bid to end student loan plan: Here’s why millions of borrowers are relieved
A federal judge has dismissed the Trump administration’s attempt to end the SAVE student loan repayment plan, ensuring millions of borrowers continue to benefit from lower monthly payments and faster loan forgiveness. Introduced in 2023, the plan caps payments at 10% of discretionary income, offers $0 payments for low-income borrowers, and waives excess interest. Over 7 million borrowers remain enrolled, with the court ruling providing temporary relief as the Trump-era phase-out is scheduled for 2028, CNBC reports.
A federal judge has dismissed the Trump administration’s attempt to end the SAVE student loan repayment plan, ensuring millions of borrowers continue to benefit from lower monthly payments and faster loan forgiveness. Introduced in 2023, the plan caps payments at 10% of discretionary income, offers $0 payments for low-income borrowers, and waives excess interest. Over 7 million borrowers remain enrolled, with the court ruling providing temporary relief as the Trump-era phase-out is scheduled for 2028, CNBC reports.
