Two lawsuits filed by Republican-led states argue that the Biden administration overstepped its authority when it implemented the SAVE repayment plan.Both judges granted partial preliminary injunctions Monday. Related video above: Colleges Introduce Programs to Help Students Graduate Debt-FreeTwo parts of the SAVE plan will be on pause until the cases are fully litigated.The Biden administration cannot cancel any more federal student debt for borrowers enrolled in the SAVE plan.
SAVE is separate from the Biden administration’s efforts to cancel student loan debt for some public-sector workers and borrowers who were defrauded by a for-profit college.What’s next for borrowersBorrowers currently enrolled in SAVE can remain in the plan while the merits of the cases are heard. Their monthly payment amounts should remain the same.But there’s a provision of the SAVE plan that was expected to be phased in next month that may be paused if the litigation is ongoing.