STATEMENT on Federal Appeals Court Blocking SAVE Student Loan Repayment Plan

“This decision threatens the entire federal student loan system and will cause complete chaos and confusion, impacting millions of student loan borrowers across the country.” 

BOSTON — Today, a federal appeals court issued an administrative stay blocking the Department of Education’s Saving on a Valuable Education (SAVE) student loan repayment plan. This follows two injunctions issued last month by federal judges in Kansas and Missouri, which each blocked portions of the SAVE plan.

An income-driven repayment plan, SAVE was introduced after the COVID repayment pause ended last year in order to help borrowers begin to repay their loans again by reducing monthly payments for millions of low-income borrowers. 

Statement from Eileen Connor, President and Executive Director of the Project on Predatory Student Lending: 

“This decision threatens the entire federal student loan system and will cause complete chaos and confusion, impacting millions of student loan borrowers and families across the country. The SAVE plan was created to allow low-income borrowers a fair path to repay their federal student loans and instead they will now have a greater risk of default and serious financial consequences. Once again, we’re calling on the Department of Education to place all student loan borrowers into forbearance until borrowers can access a fair, clear path to manage their loans.” 

About the Project on Predatory Student Lending   

The Project on Predatory Student Lending (PPSL) is the leading legal organization representing student borrowers against predatory for-profit colleges and the policies that enable institutions to exploit and cheat students. PPSL uses bold, strategic litigation and advocacy to demand accountability in the higher education space and influence policy solutions to create a more just and affordable education system. PPSL represents more than one million student borrowers and its work has resulted in cancellation of more than $22 billion of fraudulent student loan debt.