18 States That Won’t Let Biden Pay Off Your Student Loans
Eighteen states are standing against a plan by President Biden that would forgive millions of dollars in student loans. The SAVE plan is designed to make monthly payments more affordable and wipe out debt after a certain number of years. But these states aren’t having it — they’re taking the fight to court to stop the plan in its tracks.
Check Out: How Much Is President Joe Biden Worth As He Seeks Reelection?
Read Next: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
What Is the SAVE Plan?
So, what’s the SAVE plan all about? It’s a promise to people with student loans that they won’t be buried in debt forever. For most people, if they pay their loans for 20 or 25 years, the rest can be forgiven. Additionally, people who didn’t borrow a lot (often community college or trade school attendees) could get their loans forgiven even faster.
States Blocking Student Loan Forgiveness
The states involved in blocking the SAVE plan are:
Alabama
Alaska
Arkansas
Florida
Georgia
Idaho
Iowa
Kansas
Louisiana
Missouri
Montana
Nebraska
North Dakota
Ohio
Oklahoma
South Carolina
Texas
Utah
Why Are These States Opposed?
Political leaders in these 18 states think this plan is too generous and that it wasn’t what was originally intended when the idea of income-driven repayment was created. President Biden and his team argue they’re just following the rules and have the power to make these changes to help people.
Billions Have Already Been Forgiven
Here’s the kicker: these same states that are fighting against the plan have already seen their residents get a huge amount of debt forgiveness — over $46 billion — thanks to other programs from the Biden administration. It’s like saying no to dessert after you’ve already had a big slice of cake.
As this battle heats up, the big question is: What will happen next? Will these states succeed in blocking the plan, or will the Biden administration find a way to give some relief to those weighed down by student debt? Time will tell, but for now, the financial fate of many borrowers hangs in the balance.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 18 States That Won’t Let Biden Pay Off Your Student Loans
