The Education Department has reopened two student loan repayment plans amid legal challenges to its new SAVE plan, which offers lower monthly payments and quicker debt forgiveness for some borrowers. Republican attorneys general from Kansas and Missouri argue this is an indirect method of debt forgiveness following the Supreme Court’s rejection of Biden’s broader cancellation efforts. While borrowers in the SAVE plan benefit from interest-free forbearance, they do not gain credit towards forgiveness under it or Public Service Loan Forgiveness. Experts recommend evaluating different plans like Pay as You Earn or Income-Contingent Repayment for better forgiveness options.
