Biden's SAVE plan resumes after legal hurdle

The Biden administration's student loan repayment initiative, known as the SAVE (Saving on a Valuable Education) plan, has received approval from a federal appeals court to proceed. This development follows a setback last week when a judge blocked a revised version of the plan.

Wealth! host Brad Smith provides a breakdown of the SAVE plan, detailing its features and eligibility criteria.

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This post was written by Angel Smith

Video Transcript

The Biden administration's new student loan repayment plan.

Getting the green lights to resume over the weekend.

A federal appeals courts granting the saving on a valuable education or the safe plan UH, stay is what it was given after a provision of the plan was blocked after a judge issued injunction last week.

Now this gives the administration the go ahead to lower borrowers monthly payments.

This impacts around 8 million borrowers who have signed up for the new income driven repayment plan So far.

Now the plan eliminates 100% of remaining interest on subsidised and unsubsidized loans after making a full scheduled payment now increases the income exception, which cuts monthly payments.

So this also excludes the spouse's income if filing taxes separately.

So what does all this mean?

Well, it's a major win for President Biden.

The administration has forgiven about $167 billion in student loan debt during the presidency, according to the White House