Eighth Circuit Court permanently blocks SAVE Plan's most generous forgiveness provisions

The U.S. Court of Appeals for the Eighth Circuit issues a decision permanently blocking the most generous provisions of the Biden administration's SAVE Plan income-driven repayment program, including the accelerated forgiveness timeline (10 years for borrowers with balances under $12,000) and the $0 monthly payment threshold. The court holds that the Education Department exceeded its statutory authority under the Higher Education Act in designing these provisions. The decision affirms an earlier preliminary injunction. The ruling significantly limits SAVE Plan benefits for lower-income borrowers who qualify for $0 payments. Education Department places SAVE borrowers in interest-free forbearance pending legal resolution.