By many measures, the SAVE, or Saving on a Valuable Education, student loan plan was defunct. The Biden administration-era affordable repayment plan faced several legal challenges, and Congress voted over the summer to repeal the program.
But Judge John Ross, of the U.S. District Court for the Eastern District of Missouri, dismissed the main lawsuit against SAVE last week.
Consumer advocates say that could give SAVE a second life — albeit a brief one.
“Friday’s ruling was unexpected,” said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York. “Will they lift the forbearance and allow borrowers to make payments in SAVE? Will they start processing forgiveness in SAVE?”
More than 7 million student loan borrowers remain enrolled in the SAVE plan, as of the fourth quarter, according to the U.S. Department of Education.
