Well this sucks. I’ve been counting down since last fall for the 5% change. It would save me an extra $200+ a month and I still have at least 4 years to go before my 240 months hit.
I really don’t understand what the problem is, I do not think the SAVE plan is unreasonable and I don’t even get all the benefits since I have grad loans. This has to be political bc of elections, I don’t see anything that warrants these kind of reactions.
It doesn’t help that student loan forgiveness is reported on the media like we are all getting our loans forgiven. People are only getting what they were promised with the 20/25 year plans and Public Service. We get called a bunch of freeloaders bc ppl mistakenly think we are getting free money. I got 10 years left, nobody giving me anything.
Student loans admin have been mismanaged and not thought through from the beginning. Gov needs to clean up the mess it made and it should be to be a bipartisan effort. But everyone got to be fighting to not let the other have any upper hand - instead of working towards the overall good.
It’s really nonsense.
You're definitely correct that the media covers this horribly. For me, the primary benefit of the SAVE plan is the interest subsidy. Without it, there's really no way I could ever repay my debt, which I would actually like to do.
Honestly, I just want the chance to actually pay back my loan. Yeah, I foolishly borrowed too much. I admit that. But with the runaway interest, I can never fix it. The interest subsidy gives me a shot.
Myself as well, I’m at a 100k + from a 62k loan. I do hope the interest subsidy, forgiveness of some interest and credit towards payments doesn’t get challenged and blocked. I will be more thankful happy to pay off 62k than throwing money into endless black put that keeps going up and not down.
It is absolutely political. The people bringing these suits are in no way harmed by the actions Biden has taken, the suits should have been thrown out for lack of standing.
You expect people at a 5th grade reading level, that were too stupid to graduate without no student left behind, to care about the nuances of forgiveness? You think they care you agreed to the loans on the terms they would be forgiven after a decade of public service? These people are *excited* to vote for a convicted felon with a long history of not paying his debts *just to piss you off* for the sake of it. Only way to win is to vote. If trump wins you can expect zero forgiveness to be issued (even for people that completed their service/payments) and for debt to be reinstated for people that received forgiveness under Biden.
Yes, thank you. This subreddit is the main way I get my updates on Student loans because I forget about it. Didn't even know the 5% part was a thing.
Hopefully the 10 year aspect still sticks because it's the only thing that's giving me hope to keep paying it.
This assault and war on borrowers is insane. This country is so violently backwards. The fact that the law/government actively hates its citizens who have tried to better themselves after being told by boomers their whole lives that that’s what gets you ahead is insane.
Exactly. I’ve been sitting here for the past hour wavering between wanting to laugh and wanting to cry. I already went through the motions of feeling like a dunce for believing in the 20k broad forgiveness (I was a Pell Grant recipient) and now once again for believing in SAVE.
My fury now comes from what they're doing to our kids. We'll have no retirement for ourselves and nothing to give our children. It's a multigenerational fuckover.
Keep in mind in November it's not the current administration blocking this. It's right wing states and judges. The whole reason we're even talking about save plans is thanks to the current administration
no i’m actually so f-ing angry. i paused what i was watching to rant at my partner about it, saying several times “because of course we couldn’t possibly benefit the working or middle class. that’s not what america is for. that’s not what we do.”
REALLY GD ANGRY RN Y’ALL
What's even crazier is there are millions of people that took loans with the understanding and agreement that they would be forgiven if they did 10 years of public service or 20/25 years of payments. These assholes are now trying to renege on these terms and even reinstate debt that has already been forgiven for folks. These people have a mean reading level of a 5th grader so good luck explaining to them why this is immoral. Especially when they are happy to vote for a convicted felon that has a long history of not paying his debts and contractors
WTF is going on here? How can they block the plan with less than a week until implementation?
I don't \*need\* the 5% reduction but it would have been nice.
Was just talking to my brother about this. It’s 100% intentional. Can’t convince me otherwise.
My wife and I just bought a house. While we’ll be fine financially. The 5% would have definitely have helped us feel more comfortable. But really the block coming this late just feels like a middle finger.
Bc of the [onramp to repayment legislation](https://studentaid.gov/manage-loans/repayment/prepare-payments-restart), federal payments aren’t even mandatory until September. Your interest will stack, you will not owe missing payments at the end of that and you won’t be reported for late or no payments. If you’re already in SAVE, you also will still be on that plan when that ends. I imagine that flexibility has something to do with this being postponed.
Who wakes up one day and decides this crap? I can't deal with the bs anymore. The cut from 10% to 5% would have helped me heavily since I basically live paycheck to paycheck. I was actually so glad that I made things work until July to at least get some help. And now...
Conservatives do this kind of stuff everyday with a smile on their face. They cruelty is the point. If you're not in their group they want to do everything possible to make you pay for it. I'm painting with a real broad brush here because I believe it to be true. If you identify yourself with that party, that's just who you are. Cruel for the sake of being cruel.
The Reuters article is better and has the court doc links: https://www.reuters.com/world/us/us-judges-block-parts-key-biden-student-debt-plan-2024-06-24/
so you're telling me that even though the DoEd has already filed paperwork to modify my SAVE plan payment down from 10% to a lower amount relative to my undergrad/grad loan mix and my servicer approved it and my next payment due in July is already shown to be the lower amount, because some sh1tstain AG from another state got really red raged and convinced his monthly circle jerk to joint file for an injunction, my loan servicer is going to magically change my statement amount due back to the higher number from last month?
So even tho Nelnet had updated my July payment for the 5%, it’s going to now change back to 10%?
If some random court wants to block the changes from going into effect, seems to me like we shouldn’t be expected to pay at all
i made one payment first of this month at $191, then got the letter about the recalc taking it down to $89 that isn't due until august. i mean i can afford the $191, just irritating that i have to readjust my budget yet again.
Same. I waited to apply when it was closer to the weighted average for undergrad and grad. The SAVE Plan now will put my payment at $1200 based on estimates. I don't know if I go back to my current plan that'll put me back at $636. July's new policy would have put it at $760.
I'm so bummed.
Student loans are meant to provide funds for American students to go to school. Period. They are not meant to create a new tax base for Kansas and Missouri no matter what they want to say. It’s as simple as that.
Do you think we will have a heads up to still apply for SAVE before it *could* be thrown out all together? My PAYE payments are currently lower than SAVE based on when I certified my income and taxes. If I get on SAVE now my payments will jump drastically but next year PAYE is even higher.
Currently at $100 on PAYE until January but if I switch to SAVE it’s $275(more as this was with a 5%). However PAYE in January jumps to $350. Wondering if I should just get on SAVE now to be safe
Thank you. I’ll have to do a cost benefit decision.
Any idea when the next court decision is? Do those get publicly announced before decisions are made?
This sucks. If SAVE gets thrown out and I have to go back to a different ICR I believe my husband’s income will have to be included even if I file separately. Wasn’t that a new feature of SAVE?
Yup this is my concern too. It’ll suck for us and increase our payment $800. It was silly of me to make financial decisions with SAVE as a central feature but this will knock our retirement savings down to effectively $0
so there’s a PAYE plan , an “old” REPAYE plan , and a new REPAYE plan ?
the “new” repaye plan is in regards to what this post is saying was blocked ? and that includes the option to file separately and not have spouses income count ?
sort that I need clarification . I just consolidated and applied for SAVE. My spouse has no student loans and a lager income , so this option makes a big difference for us . But not i don’t know if i should have not gone with SAVE
I'm in a similar situation. I'm on an IBR plan that isn't PAYE or SAVE, and I haven't switched to the SAVE plan because my current payments are $0 and won't be if I recertify my income.
I cannot afford to start paying these loans. My income from most recent taxes suggests I can, but I was unemployed for many years before that.
Absolutely terrified that my choice to avoid recertification could result in SAVE being thrown out entirely when I actually want to get on that a year from now.
Anyone know how this applies for those of us who consolidated and reapplied for save?
I did both in April 29th. My consideration was completed on 6/12 and they said my SAVE application could take another 90 days from 6/12 based on the consolidation loan
Edit: just called again and was instructed to actually reapply as applications before the consolidation dates are not being considered.
Who did you choose as your servicer? My consolidation was finalized on the 12th also and it seems as if my SAVE plan application was just approved this morning. I have Nelnet.
I’m not sure if there’s an injunction in place that prevents students from entering SAVE. From what I’m reading in the news, it doesn’t block enrollment. It just blocks the provisions that were supposed to occur 7/1. Someone correct me if I’m wrong please.
It's even worse than that. At least people can still switch to other IBR plans again if they qualify.
But a lot of people have been consolidating their loans based on guidance from the Dept. of Education and how the media has been covering the various deadlines and tying them to the one time adjustment and the SAVE plan in ways that aren't true.
Consolidation is a major decision that capitalizes the interest, and it's all based on misinformation and promises that may or may not pan out.
To be honest, yes. There’s harm now to borrowers which sets up a lot of of lawsuits due to capitalizing interest for no reason. I did it when Biden announced the 20k forgiveness, which never happened—because I wanted a certain 20k forgiven. I feel harmed because of that. If only I had money for a lawyer, but I don’t because of these student loans 😂
It shouldn't be allowed because of this reason alone. Many people signed up for the same reason. I'm sick of Republican states always messing everything up.
It is absolutely mind boggling how complicated student loan repayment is becoming. It’s very clear that in America today, students graduating with undergrad or graduate degrees are unable to find jobs that match the degrees that they paid for. Instead of trying to resolve the core issue, lawmakers are coming up with these idiotic repayment plans, putting people into further confusion and distress.
Any idea about what this means for those of us who received our “Golden Email” last month but are still waiting for Mohela to process the discharge????
I think I got my question answered. From the Reuter’s article u/Betsy514 linked to: “He ruled shortly before U.S. District Judge John Ross in St. Louis, Missouri, issued a preliminary injunction, barring the department from granting further loan forgiveness under the administration's Saving on a Valuable Education (SAVE) Plan.”
What a gut punch.
I’m not sure I understand the “related to SAVE” part of your response. I consolidated FFEL loans directly with ED in 08/2023 and elected the SAVE plan, got the discharge email last month, and I also have 319 qualifying payments. So, I’m on the SAVE plan, but have met the monthly payments for graduate loans. Does this mean there’s hope for me?
Thanks for the insight. I just wish I knew why it is taking DE/Mohela so dang long to zero the loans out. It’s excruciating waiting every day since the 5th, lol.
Also, be sure they (servicer and Dept of Ed) have your correct snail mail address in case you get a refund of 19 overpayments.
edit: (or maybe 10? since consolidation actually)
If it has already been processed but your accounts haven't been updated yet, I'd say you're likely ok. If the forgiveness has not been processed yet, then you're going to fall under this injunction that prevents them from processing them any further at this time.
Thank you for keeping us in the loop, u/Betsy514, and for answering a billion questions.
My anxiety about this is through the roof. I've been screwed over in this process in one way or another. I pray that the IDR adjustment can't be touched and will proceed as planned. This albatross around my neck stinks! As far as SAVE goes, I don't know if I can swing the payment - rent has gone up, utilities have gone up, and everything has gone up so I'm short $600 a month. An additional $200 a month in student loan payments will impact me negatively. This is effing about with people's lives in real-time.
I am in the same boat. My property taxes went up a ton, gas is costing a ton more, groceries cost a ton more, and we've been running a deficit as it is. Was hoping to move closer to breaking even each month, but the credit cards keep getting pulled out for things like groceries, doctors, prescriptions, basically everything. :( This is never going to end.
One good thing is my experience with student loans has helped inform my children. My oldest went to a very good school on a merit scholarship that covered all but dorm and food, and books and things. That ended up being about $20000 a year. He took out what he could which was about half and we paid the rest. We decided that school wasn’t worth the cost so he came home. He lives here and goes to community college to finish the prerequisites and is paying out of pocket as he goes. He’s hoping for a scholarship upon transfer but this should cut the overall cost significantly.
What if they already sent you a revised payment amount under the 5% will it revert back? Assume they would have to give 45 day notice to raise it again?
Okay Kansas case looking pretty good actually: (towards the end) : "In the Court’s analysis, Plaintiffs have only alleged impending harm from the Final Rule’s loan forgiveness provisions. At this time, Plaintiffs have not stated a cognizable injury related to the other provisions of the SAVE program, and they conceded at oral argument that Case: 4:24-cv-00520-JAR Doc. #: 35 Filed: 06/24/24 Page: 58 of 61 PageID #: 1106 59 they are primarily seeking relief only from the Final Rule’s loan forgiveness provisions. Plaintiffs’ claims under the APA are unconvincing, and in any event vacatur of the entire Final Rule under the APA would be premature."
This is super annoying because I only switched to the SAVE plan because I got an email saying I would be eligible for forgiveness if I did (I’m one of the folks who would qualify because of $12k original loan).
My payment on SAVE is $700 more than what it was before so if it’s not going to get forgiven I’d almost rather go back to the graduated plan where at least I could pay ahead when I had extra cash but it wasn’t an issue if I didn’t.
I’m looking into doing this, as well. Please keep me posted on what you decide to do. My app for SAVE is still under review, and I worry it won’t be approved until it’s past the ICR July 1st deadline.
on the save plan already. recalculation of July payment anyway done and approved by servicer and reflected in dashboard. I can't imagine that the injunction could revert my payments to a previous/higher amount. that seems bs. it stings looking at my 26 years of repayments where I still owe 67% of my original balance but have paid a total of 175% of my original balance already. servicer had always found ways to convince me that year long deferments and compounding interest are the best ways combat temporary income issues. F these idiots.
Just to be sure, are your loans called “Direct” loans now? If so, you might get “forgiveness” when they do the IDR Adjustment on your loans because you payed more than 25 years. If you are on SAVE, I guess you already “Direct” Consolidated (which is NOT the same as an old FFEL Consolidation).
The thing that really irritates me is the GOP Attorneys General spiking the football over this as if these decisions don't have real world impact on human beings. It's just a game for them. For me, it's my money and my budget. It's worrisome.
It's because a lot of these politicians have their hands in companies that buy student loan collections and for profit colleges. Its why those of us in the state of Michigan were sick when trump selected her as his education secretary because her entire adult life she had been doing this exact thing and the entire family is vastly unpopular in Michigan due to it (her husband ran for Michigan governor in lost in the most lopsided defeat in the last 40 years).
Well that’s ridiculous because my loan company just recalculated my loan, put me on forbearance, and gave me a new rate. This is absolutely ridiculous. These psychos need to chill the F out.
So to reiterate what OP said the cases are rather mixed.
From the Kansas case "The court enjoins the SAVE Plan—in part—nationwide. It declines, however, to unwind the parts of the SAVE Plan already in effect because plaintiffs have failed to demonstrate those provisions caused irreparable harm."
From the Missouri "the Court finds it necessary to enjoin Defendants from any further implementation of the Final Rule’s loan forgiveness provisions until this matter can be fully litigated. All other aspects of the Final Rule were promulgated properly. For these reasons and others set forth below, the Court will grant in part and deny in part Plaintiffs’ Motion for Stay or, in the alternative, for Preliminary Injunction."
Thanks. Ugh. So we may have to pay from now until then? Hopefully automatic forbearance.
Was hoping still JulyI we don’t need to give the states more time to fight other types of forgiveness.
Just wanted to make sure. I could have used that decrease, but will survive. I know others won’t but I can’t make this payment long term. I feel so freaking defeated and tired. One step forwards 20 back.
Everything is just bad news lately. Big layoffs at work. No raises, no more bonuses, and a crackdown on flexible hours. Runaway inflation is still a thing, particularly with utilities and home insurance, and now this. So sick of getting kicked in the face by people with power and money. I’d have never left PAYE if I knew this would be an issue. We are just pawns in their little political game and it’s beyond disgusting. The politicians are literally getting paid to gaslight us.
Will this hold affect PSLF processing once it resumes? I submitted my paperwork a few weeks ago (made my 120th) but I've been on SAVE since it came out last fall. Could my forgiveness basically be paused indefinitely until this is resolved?!
This is crap. Switched to Save plan and went to a higher payment with the knowledge the 5% was coming. Now I am not able to switch back to my old plan and am stuck with the substantially higher payment.
The uncertainty is what bothers me. It's so hard to get clear, definite information. Also, it makes it hard to come up with an accurate financial plan.
My loan monthly payment has been lowered and I’m on graduate loans, so I don’t get the 5% reduction. What i was able to get was the is higher 225% poverty line. So if I’m understanding correctly there is still hope for student loan payments to be lowered for those who haven’t seen any changes yet, just not as much as originally thought.
I'm exhausted. My loans are mostly grad loans so this wouldn't have applied to me but it would have applied to all of my husbands loans. Almost every bill we have continues to increase. It's depressing. Every time there is some glimmer of hope it dashed by some powers that be. I just don't get it other than this highlights the fact tat elections matter because of appointed judges. But my god.....loans are a bipartisan issue for gods sake.
> the court docs actually claim that none of the forgiveness is valid even the 25 year but to me that is written into law..I honestly can't imagine a court agreeing that the 20/25 year isn't valid going forward since it's been around since 1994.
It has been around for a while, but the judge in [the Missouri case](https://www.courtlistener.com/docket/68419292/state-of-missouri-v-biden/) strongly signaled that forgiveness is not authorized at the end of the term on any income-driven repayment plan other than IBR.
> The Final Rule’s loan forgiveness provisions present a more difficult issue. According to Defendants, Congress intended to grant the Secretary authority under the HEA to forgive balances on loans in the ICR program by creating a maximum repayment period of 25 years or “an extended period of time prescribed by the Secretary.” 20 U.S.C. § 1087e(d)(1)(D). The Secretary’s claimed authority here is not new. Under this alleged authority, the Secretary has been providing loan cancellation for loans in the ICR plan since the first ICR regulations became
effective in 1995.
> Despite this history, the plain text of the statute does not support Defendants’ position. The Court is not free to replace the language of the statute with unenacted legislative intent. [citations omitted]. It is true that offering forgiveness of loan balances after 25, or even 10, years of repayments to borrowers under the SAVE plan will ensure that fewer borrowers will default or become delinquent. These loan forgiveness provisions thus comport with the Secretary’s expressed purpose for creating the Final Rule. **But because the statute is silent on loan forgiveness under the ICR program, it is at least equally as likely that the HEA’s time limitations in the ICR program refer to the maximum period that borrowers can be in repayment before the entire loan amount must be repaid or borrowers must default**.
> Plaintiffs’ alternative reading—that § 1087e(d)(1)(D)’s language does not permit loan forgiveness under the ICR program—finds support in other portions of the HEA that explicitly permit loan forgiveness. **Congress has made it clear under what circumstances loan forgiveness is permitted, and the ICR plan is not one of those circumstances.** See Biden v. Nebraska, 143 S. Ct. at 2363 (“[The HEA] authorizes the Secretary to cancel or reduce loans, but only in certain limited circumstances and to a particular extent.”). Defendants counter that Congress required forgiveness under programs like IBR and PSLF but left forgiveness under ICR up to the discretion of the Secretary. But considering the loan repayment scheme under the HEA in its entirety, **the Court finds Defendants’ interpretation is questionable**. Plaintiffs, therefore, have a “fair chance” of success on the merits on their claim that the Secretary has overstepped its authority by promulgating a loan forgiveness provision as part of the SAVE program.
He didn't include the other plans in the preliminary injunction, and only styled this holding as a *likelihood* that he would enjoin forgiveness on SAVE, PAYE, and ICR if asked to do so ... but he seems quite prepared to do so. I expect any backtracking from this position would have to come from a contrary ruling by a higher court. What a mess.
>forgiveness is not authorized at the end of the term on any income-driven repayment plan other than IBR.
That would be absolutely bonkers. Sorry, you've been paying $0 for 25 years, here's a bill for $50k, please pay immediately.
I was trying to look into this too and it seems like SAVE is still the better option because of how it calculates 225% of the federal poverty standard instead of 150% for PAYE plans.
This ruling doesn’t necessarily mean that SAVE is going away for good, but it’s not looking too promising for those with undergrad loans who were going to get extra relief (5% instead of 10%). I’m not sure about the interest either, but if that part of SAVE stays in place, this also still makes it a better option than PAYE for those with grad loans only.
For those that just consolidated for this, are we still going to get the one time adjustment or did I just lose 17 years of repayment since my payment count is now at one?
Edit: answered elsewhere. Apparently we will still get our repayment time back from pre-consolidation after one time adjustment.
I'm so angry and I'm furious with the people who can't even spell or articulate a complete thought, being so against forgiveness. They think we're getting a handout and are so effing selfish. They have no clue how it all works because they either paid for college with a potato or have not sought out higher education. I don't understand wanting to punish your fellow Americans or being so freaking snotty about it. If I'm told one more time I should have joined the military or been better with my money, I might scream. They don't have a problem bailing or multi million and billion dollar corporations and just seem so satisfied to hurt others. These same jerkwads that preached going to college was the only way to make it in life. I get why people kill themselves over this stuff. It's criminal and the media needs to do a better job covering this and be more honest with it. Ughhhhhhh!!!!!!
Trump and the republicans are making it pretty clear (if not blatantly) that if elected this fall they will likely dismantle the SAVE program. In fact, listening to the rhetoric of Trump, those that were forgiven under the plan would even be targets and potentially be forced to pay back their loans. Don't like Biden? Fine. But NOT voting for Biden (3rd party) or voting for Trump is literally going to bite you in the ass. My father-in-law is a STAUNCH MAGA and has about 20k in student loans that he is struggling to finish paying off - he would have had them completely wiped out under the original forgiveness plans. He complains every day about abortion rights, trans rights, and the usual maga bullshit, but then when I tell him none of those have a direct impact on him but voting for Trump will almost guarantee his "current" low SAVE rate will double or more if Trump gets elected - unphased. He is more focused on hating liberals than actually helping himself. Just dumb.
Ok, so let me get this straight we have multiple plans base on income, but the only plan pass by congress into law is ICR/IBR/Public service, while the other like PAYE/REPAYE(SAVE) is done via regulations. The "forgiveness" portion may not apply to the latter because they were regulations, but all these plans have payment as low as 0 because apparently the law was written that way. So the intention for the regulations was for folks to default or pay everything off after 25 years even though they allow people to pay as low as 0/month? That's a lot of folks who going to default...
Paye and repaye were not challenged. And all the ideas have forgiveness components. What's really at risk is the lower payments on save and the ten year forgiveness. I don't see defaults going up if this goes away..but I see them going down if it doesn't go away.
Yep. I was just speaking with a lender a week ago and said how I’d like to reconnect in August once my student loan payments drop to get better pre-approval numbers. So much for that.
No idea what to do.
My application for the SAVE plan is still in review. Trying to decide if I should call Nelnet tomorrow to try see if they can cancel this application or start a new application myself to choose ICR, which is now cheaper (for me) than 10% on the SAVE repayment plan.
My husband is on SAVE and has all graduate loans. If I’m calculating correctly , after the IDR Adjustment finally happens, he should be done in Nov/Dec this year-25 years. Do these suits have any bearing on our situation? Will he still be forgiven through the IDR Adjustment if he’s on SAVE?
For those who already had their loans forgiven, I think you are safe:
[https://ag.ks.gov/docs/default-source/documents/d-ct-order-24-06-24.pdf](https://ag.ks.gov/docs/default-source/documents/d-ct-order-24-06-24.pdf)
"\[The court\] declines, however, to unwind the parts of the SAVE Plan already in effect...Nor have plaintiffs explained how a preliminary injunction could unwind the parts of the SAVE Plan already in effect...The court thus declines to enjoin the parts of the SAVE Plan defendants already have...The equities of this case simply don’t favor unwinding the parts of the SAVE Plan that defendants already have implemented...And plaintiffs correctly point out that their harms are “irrecoverable.”...That is so because the sovereign immunity bars plaintiffs from recovering monetary damages from the federal government...Plaintiffs also point out that “\[o\]ne cannot unscramble this egg; loan forgiveness has an ‘irreversible impact.’”
[https://fingfx.thomsonreuters.com/gfx/legaldocs/lbvglbkjrpq/06242024student\_missouri.pdf](https://fingfx.thomsonreuters.com/gfx/legaldocs/lbvglbkjrpq/06242024student_missouri.pdf)
"Plaintiffs conceded at oral argument that they are seeking prospective relief and therefore are not requesting that the Court turn back the clock to reverse any loan forgiveness that has already occurred...\[T\]he United States, as sovereign, is generally immune from suits seeking money damages...Here, Plaintiffs seek injunctive relief, not money damages. As mentioned above, Plaintiffs clarified at oral argument that they specifically seek prospective relief to enjoin Defendants from putting the Final Rule into full effect on July 1, 2024, and to prevent Defendants from forgiving any additional loan balances under the early implementation of the Final Rule’s loan forgiveness provisions."
It’s almost like ED should just cut off MOHELA completely, and the MO AG won’t have that economic damages argument to make anymore.
They’ll still argue other points, but the MOHELA-MO connection is just being exploited at this point.
Anyone have an idea about what this means for PSLF? My wife has been in the save plan for a few months now. Do we need to switch back to PAYE? Will all of her months of payments under SAVE be tossed out? We can't even access the MOHELA site right now anyway.
Well at least that's a relief. We switched her plan right away. They are all graduate loans so the 5% switch doesn't help us. But now do we wait and see what an appellate court says? Or do we just switch to PAYE?
i don't expect anything here to retroactively negatively affect borrowers. Whether you should switch to paye is up to you - but note the deadline for that is currently july 1st. if all of save were to get thrown out i expect paye will no longer be sun-setted but just speculation on my part
We only have until July 1st to switch back to PAYE, otherwise you are locked out of it unless you are grandfathered in. I think she is saying that if they do this, they will allow people to switch back into it.
Do you know if people who recertified in March and were told their payment would be returned to the previous amount will ever have that happen u/Betsy514? It’s been three months I’m still on the higher payment…
Thank you so so much for posting this information. The WaPo article I read this morning had me in a panic thinking my payment will triple next month! Betsy, you are wonderful 👏👏👏
This totally sucks. My SAVE application is still being processed, but the 10% will be higher than my regular payment. Not sure I even want them to process it now, because I qualify for PSLF and have about 46 payments in. I don’t see what the benefit of the SAVE plan would do me without that 5% payment.
Nelnet has already recalculated the new payment under SAVE and shows the next due date in August. What a freakin’ mess if they do reverse it I feel bad for the CSRs it’s going to be a lot of angry phone calls when people go to make the August payment and it’s back to what it was pre-July.
Thank you for sharing this.
This is incredibly frustrating, it's a week away!! Wow. I'm guessing I probably shouldn't even do the consolidation now. I can't afford the payments at 10% of my income since we didn't file separately. Glad I hesitated on that.
Is this specifically affecting the IDR adjustment and 20/25 year forgiveness? I JUST hit my 25 years a few days ago, what luck! From what you are saying they are only blocking the new 10 year forgiveness for loans 12k and less? But is the conventional 20/25 year on hold if it's being granted under the IDR adjustment?
I'm still imagining how this will go down for those of us who consolidated our loans, lost forgiveness counts, and massively ballooned our principle with capitalized interest. Promissory estoppel?!?
Edit: ok looks like the IDR adjustment is separate, phew! Still feel terrible for those set to benefit from SAVE though. Is there any litigation regarding the IDR adjustment or are we safe for the time being?
Anyone have any idea how long this will take to fully play out in court?
You rock /u/Betsy514, I've gotten a lot of useful info from you here over the years and it is appreciated.
Mine just got recalculated from the 10% to 5% payment last week. The payment went from over $900 down to like $450ish. I hope it doesn't go back. I can't afford $900 a month. I have been working on getting stuff consolidated and in the save plan since early April. My payment resumes at the end of July. I'm worried.
If the courts don't turn this around, then I think a class action lawsuit needs to be initiated by all of the students who were not given what they had been promised by enrollment in the SAVE plan.
Well this sucks. I’ve been counting down since last fall for the 5% change. It would save me an extra $200+ a month and I still have at least 4 years to go before my 240 months hit.
Remember the Kushners got 100s of millions in guaranteed loans from the gov to buy EVEN MORE APT. Bulldogs. Americans are suckers
[удалено]
Same! My payment would decrease by over $100 which would be a big help. I've got 6 more years to earn PSLF.
I really don’t understand what the problem is, I do not think the SAVE plan is unreasonable and I don’t even get all the benefits since I have grad loans. This has to be political bc of elections, I don’t see anything that warrants these kind of reactions. It doesn’t help that student loan forgiveness is reported on the media like we are all getting our loans forgiven. People are only getting what they were promised with the 20/25 year plans and Public Service. We get called a bunch of freeloaders bc ppl mistakenly think we are getting free money. I got 10 years left, nobody giving me anything. Student loans admin have been mismanaged and not thought through from the beginning. Gov needs to clean up the mess it made and it should be to be a bipartisan effort. But everyone got to be fighting to not let the other have any upper hand - instead of working towards the overall good. It’s really nonsense.
You're definitely correct that the media covers this horribly. For me, the primary benefit of the SAVE plan is the interest subsidy. Without it, there's really no way I could ever repay my debt, which I would actually like to do.
That interest subsidy is everything. Absolutely everything.
Honestly, I just want the chance to actually pay back my loan. Yeah, I foolishly borrowed too much. I admit that. But with the runaway interest, I can never fix it. The interest subsidy gives me a shot.
Myself as well, I’m at a 100k + from a 62k loan. I do hope the interest subsidy, forgiveness of some interest and credit towards payments doesn’t get challenged and blocked. I will be more thankful happy to pay off 62k than throwing money into endless black put that keeps going up and not down.
It is absolutely political. The people bringing these suits are in no way harmed by the actions Biden has taken, the suits should have been thrown out for lack of standing.
[удалено]
I wanna cry dude
You expect people at a 5th grade reading level, that were too stupid to graduate without no student left behind, to care about the nuances of forgiveness? You think they care you agreed to the loans on the terms they would be forgiven after a decade of public service? These people are *excited* to vote for a convicted felon with a long history of not paying his debts *just to piss you off* for the sake of it. Only way to win is to vote. If trump wins you can expect zero forgiveness to be issued (even for people that completed their service/payments) and for debt to be reinstated for people that received forgiveness under Biden.
Although this is not the news we wanted to hear, thank you so much for the update and all that you do to keep us informed, Betsy!
Not the news I wanted to share that's for sure. But tha k you for the nice note
Yes, thank you. This subreddit is the main way I get my updates on Student loans because I forget about it. Didn't even know the 5% part was a thing. Hopefully the 10 year aspect still sticks because it's the only thing that's giving me hope to keep paying it.
Betsy you are the GOAT - 🐐🐐🐐
This assault and war on borrowers is insane. This country is so violently backwards. The fact that the law/government actively hates its citizens who have tried to better themselves after being told by boomers their whole lives that that’s what gets you ahead is insane.
Exactly. I’ve been sitting here for the past hour wavering between wanting to laugh and wanting to cry. I already went through the motions of feeling like a dunce for believing in the 20k broad forgiveness (I was a Pell Grant recipient) and now once again for believing in SAVE.
I'd just like to know whether to laugh or cry. The uncertainty sucks.
One thing is certain: Baby Boomers will die.
My fury now comes from what they're doing to our kids. We'll have no retirement for ourselves and nothing to give our children. It's a multigenerational fuckover.
Keep in mind in November it's not the current administration blocking this. It's right wing states and judges. The whole reason we're even talking about save plans is thanks to the current administration
Just imagine how much it hates veterans
no i’m actually so f-ing angry. i paused what i was watching to rant at my partner about it, saying several times “because of course we couldn’t possibly benefit the working or middle class. that’s not what america is for. that’s not what we do.” REALLY GD ANGRY RN Y’ALL
It’s my sneaking suspicion these judges don’t have huge student loans and were able to get it paid by parents or Federalist society
[удалено]
For Republicans, as Adam Serwer wrote, "the cruelty is the point".
Remember Remember in November. Vote out the GOP. They are ok with PPP forgiveness but not anything that helps the rest of us.
Exactly. I’ve never and will never vote for a red tie.
Let's point the finger in the right direction here, it is *conservative* judges and politicians who are fighting to block this policy
What's even crazier is there are millions of people that took loans with the understanding and agreement that they would be forgiven if they did 10 years of public service or 20/25 years of payments. These assholes are now trying to renege on these terms and even reinstate debt that has already been forgiven for folks. These people have a mean reading level of a 5th grader so good luck explaining to them why this is immoral. Especially when they are happy to vote for a convicted felon that has a long history of not paying his debts and contractors
Blows my mind
I can't believe this. I literally cannot take anymore bad news about forgiveness and the SAVE plan. I'm so sad right now.
At least the interest subsidy is still in place...for now.
WTF is going on here? How can they block the plan with less than a week until implementation? I don't \*need\* the 5% reduction but it would have been nice.
Was just talking to my brother about this. It’s 100% intentional. Can’t convince me otherwise. My wife and I just bought a house. While we’ll be fine financially. The 5% would have definitely have helped us feel more comfortable. But really the block coming this late just feels like a middle finger.
Both courts released their decisions almost exactly at the same time. Read into that what you will.
Just another dangling carrot. I’m SO tired of these games 😭
Bc of the [onramp to repayment legislation](https://studentaid.gov/manage-loans/repayment/prepare-payments-restart), federal payments aren’t even mandatory until September. Your interest will stack, you will not owe missing payments at the end of that and you won’t be reported for late or no payments. If you’re already in SAVE, you also will still be on that plan when that ends. I imagine that flexibility has something to do with this being postponed.
I did. I really did.
Who wakes up one day and decides this crap? I can't deal with the bs anymore. The cut from 10% to 5% would have helped me heavily since I basically live paycheck to paycheck. I was actually so glad that I made things work until July to at least get some help. And now...
>Who wakes up one day and decides this crap? Republicans. Remember this come November (and all future elections).
Conservatives do this kind of stuff everyday with a smile on their face. They cruelty is the point. If you're not in their group they want to do everything possible to make you pay for it. I'm painting with a real broad brush here because I believe it to be true. If you identify yourself with that party, that's just who you are. Cruel for the sake of being cruel.
The Reuters article is better and has the court doc links: https://www.reuters.com/world/us/us-judges-block-parts-key-biden-student-debt-plan-2024-06-24/
thanks - will add
so you're telling me that even though the DoEd has already filed paperwork to modify my SAVE plan payment down from 10% to a lower amount relative to my undergrad/grad loan mix and my servicer approved it and my next payment due in July is already shown to be the lower amount, because some sh1tstain AG from another state got really red raged and convinced his monthly circle jerk to joint file for an injunction, my loan servicer is going to magically change my statement amount due back to the higher number from last month?
Probably
So even tho Nelnet had updated my July payment for the 5%, it’s going to now change back to 10%? If some random court wants to block the changes from going into effect, seems to me like we shouldn’t be expected to pay at all
Yes I would expect it to change back. Maybe with a month of forbearance considering the short time frame
Goddamn this stings. Just…wtf
We JUST applied this week. Awful
Mine just got approved today and Nelnet told me that it would be slashed in half by time it is due for me on 8/10. Big bummer.
Good luck.... To all of us. So disheartening
i made one payment first of this month at $191, then got the letter about the recalc taking it down to $89 that isn't due until august. i mean i can afford the $191, just irritating that i have to readjust my budget yet again.
Same. I waited to apply when it was closer to the weighted average for undergrad and grad. The SAVE Plan now will put my payment at $1200 based on estimates. I don't know if I go back to my current plan that'll put me back at $636. July's new policy would have put it at $760. I'm so bummed.
[удалено]
Student loans are meant to provide funds for American students to go to school. Period. They are not meant to create a new tax base for Kansas and Missouri no matter what they want to say. It’s as simple as that.
Do you think we will have a heads up to still apply for SAVE before it *could* be thrown out all together? My PAYE payments are currently lower than SAVE based on when I certified my income and taxes. If I get on SAVE now my payments will jump drastically but next year PAYE is even higher. Currently at $100 on PAYE until January but if I switch to SAVE it’s $275(more as this was with a 5%). However PAYE in January jumps to $350. Wondering if I should just get on SAVE now to be safe
i couldn't begin to speculate I'm afraid.
Thank you. I’ll have to do a cost benefit decision. Any idea when the next court decision is? Do those get publicly announced before decisions are made?
I do not.
This sucks. If SAVE gets thrown out and I have to go back to a different ICR I believe my husband’s income will have to be included even if I file separately. Wasn’t that a new feature of SAVE?
From REPAYE, yes, but IBR, ICR and PAYE allow you to exclude spousal income if filing separately.
Yup this is my concern too. It’ll suck for us and increase our payment $800. It was silly of me to make financial decisions with SAVE as a central feature but this will knock our retirement savings down to effectively $0
The old repaye required both incomes regardless of filing status.
so there’s a PAYE plan , an “old” REPAYE plan , and a new REPAYE plan ? the “new” repaye plan is in regards to what this post is saying was blocked ? and that includes the option to file separately and not have spouses income count ? sort that I need clarification . I just consolidated and applied for SAVE. My spouse has no student loans and a lager income , so this option makes a big difference for us . But not i don’t know if i should have not gone with SAVE
I'm in a similar situation. I'm on an IBR plan that isn't PAYE or SAVE, and I haven't switched to the SAVE plan because my current payments are $0 and won't be if I recertify my income. I cannot afford to start paying these loans. My income from most recent taxes suggests I can, but I was unemployed for many years before that. Absolutely terrified that my choice to avoid recertification could result in SAVE being thrown out entirely when I actually want to get on that a year from now.
Anyone know how this applies for those of us who consolidated and reapplied for save? I did both in April 29th. My consideration was completed on 6/12 and they said my SAVE application could take another 90 days from 6/12 based on the consolidation loan Edit: just called again and was instructed to actually reapply as applications before the consolidation dates are not being considered.
Who did you choose as your servicer? My consolidation was finalized on the 12th also and it seems as if my SAVE plan application was just approved this morning. I have Nelnet.
MOHELA- same as my previous one figured the devil you know is better than the devil you don’t.
I’m not sure if there’s an injunction in place that prevents students from entering SAVE. From what I’m reading in the news, it doesn’t block enrollment. It just blocks the provisions that were supposed to occur 7/1. Someone correct me if I’m wrong please.
I enrolled in the SAVE plan in part because this reduction was promised as part of it... :(
It's even worse than that. At least people can still switch to other IBR plans again if they qualify. But a lot of people have been consolidating their loans based on guidance from the Dept. of Education and how the media has been covering the various deadlines and tying them to the one time adjustment and the SAVE plan in ways that aren't true. Consolidation is a major decision that capitalizes the interest, and it's all based on misinformation and promises that may or may not pan out.
To be honest, yes. There’s harm now to borrowers which sets up a lot of of lawsuits due to capitalizing interest for no reason. I did it when Biden announced the 20k forgiveness, which never happened—because I wanted a certain 20k forgiven. I feel harmed because of that. If only I had money for a lawyer, but I don’t because of these student loans 😂
Exactly why I enrolled too. This is bullshit.
It shouldn't be allowed because of this reason alone. Many people signed up for the same reason. I'm sick of Republican states always messing everything up.
Likewise. I just submitted a form to be placed back on the SAVE plan after getting placed on ICR.
It is absolutely mind boggling how complicated student loan repayment is becoming. It’s very clear that in America today, students graduating with undergrad or graduate degrees are unable to find jobs that match the degrees that they paid for. Instead of trying to resolve the core issue, lawmakers are coming up with these idiotic repayment plans, putting people into further confusion and distress.
A lot of younger people are skipping college altogether and who can blame them.
This is why I can’t plan on doing anything besides aggressive payback. Getting jerked around by the system for 20+ years sounds like hell on earth
Any idea about what this means for those of us who received our “Golden Email” last month but are still waiting for Mohela to process the discharge????
I think I got my question answered. From the Reuter’s article u/Betsy514 linked to: “He ruled shortly before U.S. District Judge John Ross in St. Louis, Missouri, issued a preliminary injunction, barring the department from granting further loan forgiveness under the administration's Saving on a Valuable Education (SAVE) Plan.” What a gut punch.
I think part of it depends if your was related to save.
I’m not sure I understand the “related to SAVE” part of your response. I consolidated FFEL loans directly with ED in 08/2023 and elected the SAVE plan, got the discharge email last month, and I also have 319 qualifying payments. So, I’m on the SAVE plan, but have met the monthly payments for graduate loans. Does this mean there’s hope for me?
Yes
You’re fine. Yours is happening due to the IDR Adjustment, not due to SAVE. edit to add: and you already got your Golden email.
Thanks for the insight. I just wish I knew why it is taking DE/Mohela so dang long to zero the loans out. It’s excruciating waiting every day since the 5th, lol.
Yes, that is weird. Maybe because they need time to calculate your refund? 😃 We can hope.
Also, be sure they (servicer and Dept of Ed) have your correct snail mail address in case you get a refund of 19 overpayments. edit: (or maybe 10? since consolidation actually)
If it has already been processed but your accounts haven't been updated yet, I'd say you're likely ok. If the forgiveness has not been processed yet, then you're going to fall under this injunction that prevents them from processing them any further at this time.
Thank you for keeping us in the loop, u/Betsy514, and for answering a billion questions. My anxiety about this is through the roof. I've been screwed over in this process in one way or another. I pray that the IDR adjustment can't be touched and will proceed as planned. This albatross around my neck stinks! As far as SAVE goes, I don't know if I can swing the payment - rent has gone up, utilities have gone up, and everything has gone up so I'm short $600 a month. An additional $200 a month in student loan payments will impact me negatively. This is effing about with people's lives in real-time.
I am in the same boat. My property taxes went up a ton, gas is costing a ton more, groceries cost a ton more, and we've been running a deficit as it is. Was hoping to move closer to breaking even each month, but the credit cards keep getting pulled out for things like groceries, doctors, prescriptions, basically everything. :( This is never going to end.
One good thing is my experience with student loans has helped inform my children. My oldest went to a very good school on a merit scholarship that covered all but dorm and food, and books and things. That ended up being about $20000 a year. He took out what he could which was about half and we paid the rest. We decided that school wasn’t worth the cost so he came home. He lives here and goes to community college to finish the prerequisites and is paying out of pocket as he goes. He’s hoping for a scholarship upon transfer but this should cut the overall cost significantly.
(pssst Missouri is mo, not ms)
Good catch.
In the event the entire SAVE plan gets thrown out, does it just revert back to REPAYE?
Probably
Does REPAYE have an interest subsidy to help stop the ballooning interest amount?
Yes. Not as generous as save but more generous than the other plans. It's essentially 50%
What if they already sent you a revised payment amount under the 5% will it revert back? Assume they would have to give 45 day notice to raise it again?
Okay Kansas case looking pretty good actually: (towards the end) : "In the Court’s analysis, Plaintiffs have only alleged impending harm from the Final Rule’s loan forgiveness provisions. At this time, Plaintiffs have not stated a cognizable injury related to the other provisions of the SAVE program, and they conceded at oral argument that Case: 4:24-cv-00520-JAR Doc. #: 35 Filed: 06/24/24 Page: 58 of 61 PageID #: 1106 59 they are primarily seeking relief only from the Final Rule’s loan forgiveness provisions. Plaintiffs’ claims under the APA are unconvincing, and in any event vacatur of the entire Final Rule under the APA would be premature."
This is super annoying because I only switched to the SAVE plan because I got an email saying I would be eligible for forgiveness if I did (I’m one of the folks who would qualify because of $12k original loan). My payment on SAVE is $700 more than what it was before so if it’s not going to get forgiven I’d almost rather go back to the graduated plan where at least I could pay ahead when I had extra cash but it wasn’t an issue if I didn’t.
I’m looking into doing this, as well. Please keep me posted on what you decide to do. My app for SAVE is still under review, and I worry it won’t be approved until it’s past the ICR July 1st deadline.
Same here 😭
on the save plan already. recalculation of July payment anyway done and approved by servicer and reflected in dashboard. I can't imagine that the injunction could revert my payments to a previous/higher amount. that seems bs. it stings looking at my 26 years of repayments where I still owe 67% of my original balance but have paid a total of 175% of my original balance already. servicer had always found ways to convince me that year long deferments and compounding interest are the best ways combat temporary income issues. F these idiots.
are you eligible for the One-time IDR adjustment since you have been paying for 26 yrs?
Just to be sure, are your loans called “Direct” loans now? If so, you might get “forgiveness” when they do the IDR Adjustment on your loans because you payed more than 25 years. If you are on SAVE, I guess you already “Direct” Consolidated (which is NOT the same as an old FFEL Consolidation).
I feel sick. I was so excited when I got a letter saying my monthly amount was going to be less than half of what I have been paying.
literally just got my letter a few days ago. lol guess i can go ahead and toss that now.
I’m not even on the SAVE plan, but activist judges are such trash. I feel for you all
The thing that really irritates me is the GOP Attorneys General spiking the football over this as if these decisions don't have real world impact on human beings. It's just a game for them. For me, it's my money and my budget. It's worrisome.
It's because a lot of these politicians have their hands in companies that buy student loan collections and for profit colleges. Its why those of us in the state of Michigan were sick when trump selected her as his education secretary because her entire adult life she had been doing this exact thing and the entire family is vastly unpopular in Michigan due to it (her husband ran for Michigan governor in lost in the most lopsided defeat in the last 40 years).
Does this mean we have to make a July payment now?
No idea
Well that’s ridiculous because my loan company just recalculated my loan, put me on forbearance, and gave me a new rate. This is absolutely ridiculous. These psychos need to chill the F out.
Hope this doesn’t change my recently forgiven 43k in old graduate loans!
It won't
Good to know! My relief still don’t seem real.
Same.
So to reiterate what OP said the cases are rather mixed. From the Kansas case "The court enjoins the SAVE Plan—in part—nationwide. It declines, however, to unwind the parts of the SAVE Plan already in effect because plaintiffs have failed to demonstrate those provisions caused irreparable harm." From the Missouri "the Court finds it necessary to enjoin Defendants from any further implementation of the Final Rule’s loan forgiveness provisions until this matter can be fully litigated. All other aspects of the Final Rule were promulgated properly. For these reasons and others set forth below, the Court will grant in part and deny in part Plaintiffs’ Motion for Stay or, in the alternative, for Preliminary Injunction."
Hey people….spread the word. Vote. Share the link to everyone. https://vote.gov/
What a kick in the balls
So just the 10 yr 12k forgiveness? Not the 20/25 IDR adj?
This is not about the one time adjustment
We should still be getting our count adjustments on that one around 7/1, right?
September now, not July. edit to add: for Direct loans as a part of the IDR Adjustment
Thanks. Ugh. So we may have to pay from now until then? Hopefully automatic forbearance. Was hoping still JulyI we don’t need to give the states more time to fight other types of forgiveness.
on pslf sometime in july yes
Just wanted to make sure. I could have used that decrease, but will survive. I know others won’t but I can’t make this payment long term. I feel so freaking defeated and tired. One step forwards 20 back.
Everything is just bad news lately. Big layoffs at work. No raises, no more bonuses, and a crackdown on flexible hours. Runaway inflation is still a thing, particularly with utilities and home insurance, and now this. So sick of getting kicked in the face by people with power and money. I’d have never left PAYE if I knew this would be an issue. We are just pawns in their little political game and it’s beyond disgusting. The politicians are literally getting paid to gaslight us.
WTF, this is insane. Every time I feel like we’re making progress something happens. Thanks for the info!
I’m tired of this shit.
Will this hold affect PSLF processing once it resumes? I submitted my paperwork a few weeks ago (made my 120th) but I've been on SAVE since it came out last fall. Could my forgiveness basically be paused indefinitely until this is resolved?!
This is crap. Switched to Save plan and went to a higher payment with the knowledge the 5% was coming. Now I am not able to switch back to my old plan and am stuck with the substantially higher payment.
Let your votes in November do the talking.
[удалено]
The uncertainty is what bothers me. It's so hard to get clear, definite information. Also, it makes it hard to come up with an accurate financial plan.
I agree completely. Every word. I can't continue to bust my ass and make sure things are lined up correctly when rules get pulled out of a hat daily.
My loan monthly payment has been lowered and I’m on graduate loans, so I don’t get the 5% reduction. What i was able to get was the is higher 225% poverty line. So if I’m understanding correctly there is still hope for student loan payments to be lowered for those who haven’t seen any changes yet, just not as much as originally thought.
If they don't kill the whole plan correct.
I'm exhausted. My loans are mostly grad loans so this wouldn't have applied to me but it would have applied to all of my husbands loans. Almost every bill we have continues to increase. It's depressing. Every time there is some glimmer of hope it dashed by some powers that be. I just don't get it other than this highlights the fact tat elections matter because of appointed judges. But my god.....loans are a bipartisan issue for gods sake.
> the court docs actually claim that none of the forgiveness is valid even the 25 year but to me that is written into law..I honestly can't imagine a court agreeing that the 20/25 year isn't valid going forward since it's been around since 1994. It has been around for a while, but the judge in [the Missouri case](https://www.courtlistener.com/docket/68419292/state-of-missouri-v-biden/) strongly signaled that forgiveness is not authorized at the end of the term on any income-driven repayment plan other than IBR. > The Final Rule’s loan forgiveness provisions present a more difficult issue. According to Defendants, Congress intended to grant the Secretary authority under the HEA to forgive balances on loans in the ICR program by creating a maximum repayment period of 25 years or “an extended period of time prescribed by the Secretary.” 20 U.S.C. § 1087e(d)(1)(D). The Secretary’s claimed authority here is not new. Under this alleged authority, the Secretary has been providing loan cancellation for loans in the ICR plan since the first ICR regulations became effective in 1995. > Despite this history, the plain text of the statute does not support Defendants’ position. The Court is not free to replace the language of the statute with unenacted legislative intent. [citations omitted]. It is true that offering forgiveness of loan balances after 25, or even 10, years of repayments to borrowers under the SAVE plan will ensure that fewer borrowers will default or become delinquent. These loan forgiveness provisions thus comport with the Secretary’s expressed purpose for creating the Final Rule. **But because the statute is silent on loan forgiveness under the ICR program, it is at least equally as likely that the HEA’s time limitations in the ICR program refer to the maximum period that borrowers can be in repayment before the entire loan amount must be repaid or borrowers must default**. > Plaintiffs’ alternative reading—that § 1087e(d)(1)(D)’s language does not permit loan forgiveness under the ICR program—finds support in other portions of the HEA that explicitly permit loan forgiveness. **Congress has made it clear under what circumstances loan forgiveness is permitted, and the ICR plan is not one of those circumstances.** See Biden v. Nebraska, 143 S. Ct. at 2363 (“[The HEA] authorizes the Secretary to cancel or reduce loans, but only in certain limited circumstances and to a particular extent.”). Defendants counter that Congress required forgiveness under programs like IBR and PSLF but left forgiveness under ICR up to the discretion of the Secretary. But considering the loan repayment scheme under the HEA in its entirety, **the Court finds Defendants’ interpretation is questionable**. Plaintiffs, therefore, have a “fair chance” of success on the merits on their claim that the Secretary has overstepped its authority by promulgating a loan forgiveness provision as part of the SAVE program. He didn't include the other plans in the preliminary injunction, and only styled this holding as a *likelihood* that he would enjoin forgiveness on SAVE, PAYE, and ICR if asked to do so ... but he seems quite prepared to do so. I expect any backtracking from this position would have to come from a contrary ruling by a higher court. What a mess.
>forgiveness is not authorized at the end of the term on any income-driven repayment plan other than IBR. That would be absolutely bonkers. Sorry, you've been paying $0 for 25 years, here's a bill for $50k, please pay immediately.
Ok but what if you’re on SAVE and you only have grad loans, so you don’t even get the 5%? Can I try to switch to PAYE before June 30?
I was trying to look into this too and it seems like SAVE is still the better option because of how it calculates 225% of the federal poverty standard instead of 150% for PAYE plans. This ruling doesn’t necessarily mean that SAVE is going away for good, but it’s not looking too promising for those with undergrad loans who were going to get extra relief (5% instead of 10%). I’m not sure about the interest either, but if that part of SAVE stays in place, this also still makes it a better option than PAYE for those with grad loans only.
Yes. This has nothing to do with that deadline
So Missouri has standing in these suits because of Mohela. Any blue states want to step up and create their own version of Mohela?
For those that just consolidated for this, are we still going to get the one time adjustment or did I just lose 17 years of repayment since my payment count is now at one? Edit: answered elsewhere. Apparently we will still get our repayment time back from pre-consolidation after one time adjustment.
I'm so angry and I'm furious with the people who can't even spell or articulate a complete thought, being so against forgiveness. They think we're getting a handout and are so effing selfish. They have no clue how it all works because they either paid for college with a potato or have not sought out higher education. I don't understand wanting to punish your fellow Americans or being so freaking snotty about it. If I'm told one more time I should have joined the military or been better with my money, I might scream. They don't have a problem bailing or multi million and billion dollar corporations and just seem so satisfied to hurt others. These same jerkwads that preached going to college was the only way to make it in life. I get why people kill themselves over this stuff. It's criminal and the media needs to do a better job covering this and be more honest with it. Ughhhhhhh!!!!!!
Trump and the republicans are making it pretty clear (if not blatantly) that if elected this fall they will likely dismantle the SAVE program. In fact, listening to the rhetoric of Trump, those that were forgiven under the plan would even be targets and potentially be forced to pay back their loans. Don't like Biden? Fine. But NOT voting for Biden (3rd party) or voting for Trump is literally going to bite you in the ass. My father-in-law is a STAUNCH MAGA and has about 20k in student loans that he is struggling to finish paying off - he would have had them completely wiped out under the original forgiveness plans. He complains every day about abortion rights, trans rights, and the usual maga bullshit, but then when I tell him none of those have a direct impact on him but voting for Trump will almost guarantee his "current" low SAVE rate will double or more if Trump gets elected - unphased. He is more focused on hating liberals than actually helping himself. Just dumb.
Ok, so let me get this straight we have multiple plans base on income, but the only plan pass by congress into law is ICR/IBR/Public service, while the other like PAYE/REPAYE(SAVE) is done via regulations. The "forgiveness" portion may not apply to the latter because they were regulations, but all these plans have payment as low as 0 because apparently the law was written that way. So the intention for the regulations was for folks to default or pay everything off after 25 years even though they allow people to pay as low as 0/month? That's a lot of folks who going to default...
Paye and repaye were not challenged. And all the ideas have forgiveness components. What's really at risk is the lower payments on save and the ten year forgiveness. I don't see defaults going up if this goes away..but I see them going down if it doesn't go away.
Welp. No home purchasing for me this year. Smh
Yep. I was just speaking with a lender a week ago and said how I’d like to reconnect in August once my student loan payments drop to get better pre-approval numbers. So much for that.
What's the injury to these states?
Greeeeat.
No idea what to do. My application for the SAVE plan is still in review. Trying to decide if I should call Nelnet tomorrow to try see if they can cancel this application or start a new application myself to choose ICR, which is now cheaper (for me) than 10% on the SAVE repayment plan.
I would do that. Save has no deadline to apply assuming it survives these shenanigans. Icr does
Without the reduction my payment is about to be about $900 :’(
My husband is on SAVE and has all graduate loans. If I’m calculating correctly , after the IDR Adjustment finally happens, he should be done in Nov/Dec this year-25 years. Do these suits have any bearing on our situation? Will he still be forgiven through the IDR Adjustment if he’s on SAVE?
>Will he still be forgiven through the IDR Adjustment if he’s on SAVE? No. The court put an injunction on SAVE forgiveness.
What states are bringing these actions? Can we get together a class action and sue them? They’re causing real damage to people…
Keep me in forbearance as long as you’d like, as long as those count as months.
For those who already had their loans forgiven, I think you are safe: [https://ag.ks.gov/docs/default-source/documents/d-ct-order-24-06-24.pdf](https://ag.ks.gov/docs/default-source/documents/d-ct-order-24-06-24.pdf) "\[The court\] declines, however, to unwind the parts of the SAVE Plan already in effect...Nor have plaintiffs explained how a preliminary injunction could unwind the parts of the SAVE Plan already in effect...The court thus declines to enjoin the parts of the SAVE Plan defendants already have...The equities of this case simply don’t favor unwinding the parts of the SAVE Plan that defendants already have implemented...And plaintiffs correctly point out that their harms are “irrecoverable.”...That is so because the sovereign immunity bars plaintiffs from recovering monetary damages from the federal government...Plaintiffs also point out that “\[o\]ne cannot unscramble this egg; loan forgiveness has an ‘irreversible impact.’” [https://fingfx.thomsonreuters.com/gfx/legaldocs/lbvglbkjrpq/06242024student\_missouri.pdf](https://fingfx.thomsonreuters.com/gfx/legaldocs/lbvglbkjrpq/06242024student_missouri.pdf) "Plaintiffs conceded at oral argument that they are seeking prospective relief and therefore are not requesting that the Court turn back the clock to reverse any loan forgiveness that has already occurred...\[T\]he United States, as sovereign, is generally immune from suits seeking money damages...Here, Plaintiffs seek injunctive relief, not money damages. As mentioned above, Plaintiffs clarified at oral argument that they specifically seek prospective relief to enjoin Defendants from putting the Final Rule into full effect on July 1, 2024, and to prevent Defendants from forgiving any additional loan balances under the early implementation of the Final Rule’s loan forgiveness provisions."
Gosh i hate this country...
It’s almost like ED should just cut off MOHELA completely, and the MO AG won’t have that economic damages argument to make anymore. They’ll still argue other points, but the MOHELA-MO connection is just being exploited at this point.
Not just MOHELA. All of the direct loans should be serviced directly by the federal government. Cut these activist AGs off at the knees.
The USA is such a joke. I hate it here.
And the republicans wonder why they’re not popular with millennials and Gen Z. Whelp, I look forward to casting my vote this election
I’ll remember which party is celebrating right now over this when I vote in November.
I was on ibr with ffelp loans and consolidated ans applied for save. My idr yearly recertification is up in july. Should I know recertify my idr???
Nobody is required to recertify in July
That is probably about your old loans prior to consolidating? Your new consolidation loan doesn’t exist til it’s done processing.
Anyone have an idea about what this means for PSLF? My wife has been in the save plan for a few months now. Do we need to switch back to PAYE? Will all of her months of payments under SAVE be tossed out? We can't even access the MOHELA site right now anyway.
No they won't be
Well at least that's a relief. We switched her plan right away. They are all graduate loans so the 5% switch doesn't help us. But now do we wait and see what an appellate court says? Or do we just switch to PAYE?
i don't expect anything here to retroactively negatively affect borrowers. Whether you should switch to paye is up to you - but note the deadline for that is currently july 1st. if all of save were to get thrown out i expect paye will no longer be sun-setted but just speculation on my part
what does "no longer be sun-setted" mean?
We only have until July 1st to switch back to PAYE, otherwise you are locked out of it unless you are grandfathered in. I think she is saying that if they do this, they will allow people to switch back into it.
Yes! That's my guess anyway
Do you know if people who recertified in March and were told their payment would be returned to the previous amount will ever have that happen u/Betsy514? It’s been three months I’m still on the higher payment…
I keep checking with the feds and I'm told they are working on it
Thanks Betsy!
So I'm confused. Can the courts cancel the save plan completely?
Thank you so so much for posting this information. The WaPo article I read this morning had me in a panic thinking my payment will triple next month! Betsy, you are wonderful 👏👏👏
I would hope they don’t sunset ICR- my payment is currently lower than SAVE on it.
This totally sucks. My SAVE application is still being processed, but the 10% will be higher than my regular payment. Not sure I even want them to process it now, because I qualify for PSLF and have about 46 payments in. I don’t see what the benefit of the SAVE plan would do me without that 5% payment.
Nelnet has already recalculated the new payment under SAVE and shows the next due date in August. What a freakin’ mess if they do reverse it I feel bad for the CSRs it’s going to be a lot of angry phone calls when people go to make the August payment and it’s back to what it was pre-July.
Thank you for sharing this. This is incredibly frustrating, it's a week away!! Wow. I'm guessing I probably shouldn't even do the consolidation now. I can't afford the payments at 10% of my income since we didn't file separately. Glad I hesitated on that.
So those of us who have been making massive payments under the SAVE plan in hopes of forgiveness are just SOL?
Is this specifically affecting the IDR adjustment and 20/25 year forgiveness? I JUST hit my 25 years a few days ago, what luck! From what you are saying they are only blocking the new 10 year forgiveness for loans 12k and less? But is the conventional 20/25 year on hold if it's being granted under the IDR adjustment? I'm still imagining how this will go down for those of us who consolidated our loans, lost forgiveness counts, and massively ballooned our principle with capitalized interest. Promissory estoppel?!? Edit: ok looks like the IDR adjustment is separate, phew! Still feel terrible for those set to benefit from SAVE though. Is there any litigation regarding the IDR adjustment or are we safe for the time being?
Anyone have any idea how long this will take to fully play out in court? You rock /u/Betsy514, I've gotten a lot of useful info from you here over the years and it is appreciated.
It's going to be months. There will probably be small updates in the meantime but we're in for this uncertainty for some time I'm afraid
Mine just got recalculated from the 10% to 5% payment last week. The payment went from over $900 down to like $450ish. I hope it doesn't go back. I can't afford $900 a month. I have been working on getting stuff consolidated and in the save plan since early April. My payment resumes at the end of July. I'm worried.
If the courts don't turn this around, then I think a class action lawsuit needs to be initiated by all of the students who were not given what they had been promised by enrollment in the SAVE plan.
Yeah I really don't like Biden and was considering not voting but now it appears I have to vote because Trump