A Biden plan cuts student loan payments for millions to $0. Will it be the next legal battle?
This summer, millions of Americans with student loans will be able to apply for a new repayment plan that offers some of the most lenient terms ever. Interest won’t pile up as long as borrowers make regular payments. Millions of people will have payments of $0. And starting in 2024, undergraduate loan payments will be reduced by half. Known as the SAVE Plan, it was announced last year but has been overshadowed by President Joe Biden’s proposal for one-time student loan cancellation. After the Supreme Court struck down Biden’s cancellation plan, the repayment option is taking center stage, with some conservatives saying it's vulnerable to a legal challenge.