FOR IMMEDIATE RELEASE – Today, a network of organizations sent an open letter to the Attorneys General of their respective states, opposing recent lawsuits challenging a student loan debt relief initiative. The lawsuits, initiated by Georgia Attorney General Christopher Carr and supported by 17 other states, target the Biden-Harris administration and the U.S. Department of Education. This legal action seeks to block the implementation of the SAVE Plan, a comprehensive federal student loan debt cancellation policy aimed at providing significant relief to borrowers. As the partners wrote:
“Our organizations stand firm against any legal action that prevents student loan borrowers from receiving an equitable pathway to loan forgiveness. We believe The SAVE Plan will benefit Georgians by easing financial burdens, promoting increased homeownership and credit scores, and lowering delinquency rates on other debt.
“The SAVE Plan is unequivocally a step in the right direction to help student loan borrowers deal with mounting debt and boost our states’ economies. We will continue to advocate for policies that assist communities in gaining better economic stability and remain committed to supporting initiatives that provide much-needed relief to student loan borrowers.”
The SAVE Plan offers numerous benefits designed to help borrowers manage their student loan debt. It increases the income minimum threshold for monthly loans, shortens the repayment term to 10 years for borrowers with less than $12,000 in student loans, and waives outstanding interest after borrowers make income-based payments.
As of May 2024, over 65,000 Georgians have applied for forgiveness under the SAVE Plan and Income-Driven Repayment adjustment plans. Since 2021, additional student loan debt relief initiatives, including the Public Service Loan Forgiveness program, have forgiven $3.5 million for 38,890 borrowers.
The open letter signatures include:
Common Good Iowa
Every Texan
Georgia Budget and Policy Institute
Invest in Louisiana
Missouri Budget Project
Montana Budget & Policy Center
Oklahoma Policy Institute
Voices for Utah Children
