Trump officials move to scrap Biden student-loan repayment plan

Key Highlights

• The law is clear: if you take out a loan, you must pay it back,” he added. Catherine Hanaway, Missouri’s Republican attorney general, whose state joined Arkansas, Florida, Georgia, North Dakota, Ohio, and Oklahoma in suing the Biden administration last March over claims that Save was too generous and illegal, said: “Our office fought for hardworking Americans who were being preyed upon by Biden administration bureaucrats, and we won in court every time.”She added: “Unilaterally saddling taxpayers with someone else’s Ivy League debt ignored congressional authority and was clearly unlawful.
• We appreciate president Trump’s real, long-term solutions instead of illegal student loan schemes.”Biden’s Save program, widely regarded as one of the most generous student loan repayment plans in US history, lowered some borrowers’ monthly payments to as little as $0, cut required payments on undergraduate loans by half, and offered early forgiveness for those with low balances. However, several Republican-led states have argued that the administration overstepped its authority by setting these repayment terms and canceling debt without congressional approval. In response to Tuesday’s announcement, Persis Yu, deputy executive director of Protect Borrowers, a group focused on investigating financial abuses and advocating for debt protection policies, said: “While millions of student loan borrowers struggle amidst the worsening affordability crisis … billionaire education secretary, Linda McMahon chose to strike a back-room deal with a right-wing state attorney general and strip borrowers of the most affordable repayment plan that would help millions to stay on track with their loans while keeping a roof over their head.”Similarly, Natalie Abrams, president of the Student Debt Crisis Center said: “Today’s decision from the department of education is devastating for the nearly 8 million student loan borrowers who depended on the Save plan to keep their payments affordable.
• Borrowers have endured years of uncertainty, and this only exacerbates the confusion and financial strain they are already facing.”“Borrowers need real relief and stability, not a return to unaffordable, costly student loan payments that push them closer to financial crisis,” Abrams added. More than 43 million Americans – roughly one in six adul.