Law Firm Pressures Education Department Over SAVE Plan Transition
Public Goods Practice filed a legal request demanding a timeline for transitioning 7.5 million student borrowers off the Biden-era SAVE repayment plan.
The law firm Public Goods Practice filed a legal request pressing the United States Department of Education for a clear timeline regarding the transition of 7.5 million borrowers off the Biden-era SAVE repayment plan. The firm is seeking to block the involuntary transfer of borrowers as many remain in forbearance without payment information, despite the expiration of initial 90-day and 30-day notice periods.
Counsel for the United States Department of Education stated the agency does not know when borrowers whose grace periods have expired will be moved to new plans. This uncertainty comes during a broader student-loan overhaul led by President Donald Trump, who introduced the Repayment Assistance Plan (RAP).
Borrowers have reported that the RAP results in higher monthly payments than the previous SAVE plan. These increases have raised concerns regarding potential loan defaults and the risk of wage garnishment for millions of affected individuals.
