U.S. Secretary of Education Miguel Cardona Reacts to 8th Circuit Court Ruling on SAVE Plan

“The Administration strongly opposes the recent ruling by the Eighth Circuit that has halted the implementation of the Biden Administration’s SAVE plan. If this decision is upheld, millions of borrowers could face significant increases in their monthly payments. Additionally, the ruling’s rationale may prevent individuals who have made faithful repayments for up to 25 years from receiving loan forgiveness. This ruling breaks with the longstanding practice of offering loan forgiveness dating back 30 years.

“It is concerning that lawsuits driven by political motives from Republican officials are once again obstructing efforts to reduce payments for millions of borrowers.

“Borrowers who are part of the SAVE Plan will be placed in an interest-free forbearance period while our Administration vigorously defends the plan in court. Regular updates will be provided to affected borrowers in the coming days.

“Not long ago, a million borrowers defaulted on their student loans annually due to unaffordable payments. The SAVE plan is a necessary and legally sanctioned initiative to address the flaws in our student loan system and enhance the affordability of higher education in the country. The Biden-Harris Administration remains committed to providing relief to as many borrowers as possible. To date, we have approved $169 billion in relief for nearly 4.8 million Americans, including educators, veterans, public servants, defrauded students, borrowers with disabilities, and others. President Biden, Vice President Harris, and I continue to advocate for college affordability through initiatives like increased Pell Grants and free community college, underscoring our dedication to this important cause.”