The roller coaster ride for borrowers enrolled in a key affordable repayment plan continues.
On Monday, the 8th Circuit directed a district court to approve Donald Trump’s proposed settlement with the state of Missouri to eliminate the SAVE student-loan repayment plan.
The plan has been embroiled in a legal back-and-forth for years. Most recently, a district court declined to rule on the proposed settlement, which some advocates and lawmakers saw as a win for borrowers and urged the Department of Education to carry out relief under SAVE.
However, the 8th Circuit’s ruling means that, once approved, the department will move forward with the settlement and require enrolled borrowers to transition to a new plan.
I’ve been suggesting a debt strike for a long time and nobody ever thinks it’s a good idea.
It’s a good idea but it needs broad support. Like physical strikes, they have tools of oppression at the ready - your credit score will tank meaning among other things your ability to get housing is affected. That’s a pretty serious, heavy threat. Millions of people need to join in this for the system to be overwhelmed enough. So start talking about it more, IRL too.
People like the idea they just don’t think it’s realistic, which is paradoxically true only because they all think that way.