By this time next year, millions of borrowers could be expected to repay student loans under the original terms agreed upon.
President Joe Biden’s Saving on a Valuable Education (SAVE) program remains halted by two federal court decisions. SAVE had provided arrangements for income-contingent repayments and debt forgiveness.
SAVE recipients were informed last month that they are currently in a state of forbearance, where interest will not accrue.
Monthly repayment obligations will be delayed until after December, at which point President Donald Trump’s administration will announce the protocol for higher education lending.
Before then, however, Trump and Congress might downsize the U.S. Department of Education and reassign some of its functions, including the administration of $1 trillion-plus in federal student loans, to other departments….