How Many Student Loan Borrowers Live In States Fighting Biden’s SAVE Plan | Global News Avenue

If you have student loans and live in one of these states, you may be one of millions of borrowers, and the state may be responsible for all the uncertainty surrounding your loans. Save for a valuable education (SAVE) plan.

More than a third of federal student loan borrowers in the SAVE program, or 2.4 million, live in one of the 18 states suing to block the income-driven repayment plan. The lawsuits create uncertainty for the 6.9 million borrowers nationwide who participate in the program.

That’s according to a recent report from the Student Borrower Protection Center (SBPC), which analyzed data from the Department of Education, the Census Bureau and the New York Fed. The data was compiled before the latest round of aid from the White House, $4.23 billion forgiven for 150,000 borrowers on Monday.

How did we get here?

Borrowers enrolled in the SAVE program Already in trouble Since July. Two initial lawsuits filed in Kansas and Missouri blocked President Joe Biden’s efforts to provide cheaper payments and easier forgiveness for federal student loan borrowers.

These cases include through federal courtrepeatedly requested the Ministry of Education to Planned borrowers enter forbearance until the litigation is resolved.

many Borrowers are worried The incoming Trump administration will abandon the program entirely in court, and they won’t receive the more generous payments or forgiveness Biden promised.

Kansas case

A coalition of 11 states, led by Kansas, filed a lawsuit to block broad forgiveness under the SAVE program. States claim the president has no authority to authorize such large spending without congressional approval.

The judge excluded eight of the 11 states involved in the lawsuit, including Kansas, saying they did not have standing. There are 60,000 borrowers in Kansas enrolled in the SAVE program.

The lawsuit is currently being led by Alaska, which has 11,000 SAVE borrowers. Additionally, Texas and South Carolina remain parties to the lawsuit.

Missouri case

Missouri has 136,700 SAVE program borrowers and is still in litigation with six other states. The district court ruled that Missouri had standing to appeal because the SAVE program would cause “irreparable harm” to MOHELA, Missouri’s state loan servicer.

Six other states — Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma — certified they were eligible and remain involved in the lawsuit. The district court found merit in the states’ assertion that the law did not authorize loan forgiveness.