Biden administration reverses course, reopens income-based student loan repayment programs [Video]

Two student loan repayment plans have been reopened for enrollment by the Department of Education (DOE) following a federal court injunction against the Biden administration’s Saving on a Valuable Education (SAVE) program.   

New enrollment in the Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR) plans programs was halted last summer in an attempt to phase them out and encourage borrowers to sign up for the Biden-Harris administration’s SAVE plan, but now people can sign up once again.

“The Department continues to defend in court the authority to cut payments for borrowers with high debts and low incomes through the SAVE Plan,” U.S. Under Secretary of Education James Kvaal said in a statement. “In the meantime, we are making more options available to low-income borrowers, teachers, servicemembers, and other public servants so they can make the best choices for their financial situation.”

The two reinstated plans offer credit for Public Service Loan Forgiveness (PSLF) and income-driven repayment (IDR). Monthly payments are set by …