DEVELOPING: Millions of Borrowers Face Immediate Payment Hike Under Biden's SAVE Plan Settlement

Breaking News: Millions of Borrowers Face Immediate Payment Hike Under Biden's SAVE Plan Settlement Millions of borrowers in the Saving on a Valuable Education (SAVE) plan will start making payments under a proposed settlement agreement reached by the U.S. Department of Education, effective immediately. This comes after a prolonged payment pause due to ongoing legal challenges. According to the settlement, interest resumed accruing on SAVE loans in August, and now borrowers will be required to make payments. Under Secretary of Education Nicholas Kent stated, "The law is clear: if you take out a loan, you must pay it back." The SAVE plan, introduced by the Biden administration, offered flexible and generous income-driven repayment terms, including monthly payments as low as $0 for low-income borrowers. However, Republican state attorneys general sued the administration, arguing the plan was too generous. The proposed settlement agreement ends the SAVE plan, and borrowers will be transitioned to other repayment options. The Department of Education has not yet announced specific details on the transition process or alternative repayment plans. This is a developing story, and further updates will be provided as more information becomes available.