Education Department restores IDR student loan applications
The applications were put on pause after a federal appeals court ruled the Biden administration's Saving on Valuable Education (SAVE) income-drive repayment (IDR) plan was illegal.
'A federal appeals court struck down another one of the Biden Administration's illegal efforts to transfer student loan debt to taxpayers. In response, the Trump Administration substantially revised the income-driven repayment plan application to conform with the ruling,' said Acting Education Under Secretary James Bergeron.
'Our team was able to relaunch this application within weeks, ensuring borrowers have access and the ability to access all legal repayment plans,' he added.
The American Federation of Teachers (AFT), one of the largest unions of educators in the country, had sued the federal agency over the removal of the plans.
Other applications that were blocked besides the SAVE plan was Public Service Loan Forgiveness Program, a popular IDR plan used by teachers.
'The AFT has fought tirelessly to make college more affordable by limiting student debt for public service workers and countless others — progress that's now in jeopardy because of this illegal and immoral decision to deny borrowers their rights under the law,' AFT President Randi Weingarten said at the time.
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