Student Loan Update: Legal Filing Pushes for Details From Trump's Ed Dept
Summary
A legal filing from Public Goods Practice is pressing the U.S. Department of Education to explain when borrowers will leave the SAVE student loan repayment plan. Some borrowers reportedly passed a 90-day deadline and a 30-day extension without being transferred or told what their new payments will be.Key Facts
- Up to 5.5 million borrowers were still waiting to leave SAVE, according to the article.
- The Education Department initially said servicers would begin notifying borrowers on July 1 and give them 90 days to choose another repayment plan.
- Some borrowers reportedly received a further 30-day final notice, which expired for some without a transfer or information about new payments.
- About 7.5 million borrowers were enrolled in SAVE when the department announced its transition plans earlier in the year.
- The department reportedly said on October 27 that nearly 2 million borrowers had selected a new repayment plan.
- SAVE tied federal student loan payments to borrowers’ incomes and family sizes and offered a faster path to forgiveness for some borrowers.
- In March, the Education Department announced that SAVE would end after a court-approved settlement involving the department and Missouri.
- The department said its new Repayment Assistance Plan would launch July 1.
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