DENVER — With a new president in the White House and a new court ruling, Coloradans paying back student loans with certain payment plans could see changes. Denver7 spoke with a student loan attorney to find out what the politics mean for those who currently have debt.
Attorney Karen Cody-Hopkins, who specializes in student loans and bankruptcy, said she has been swamped by the confusion in the student loan world. A recent ruling now blocks the "Saving on a Valuable Education" (SAVE) Plan, a repayment option introduced by the Biden administration.
The Eighth Circuit Court of Appeals agreed with a lower court that sided with seven Republican-led states against the plan. When the SAVE plan was active, it provided borrowers with affordable income-driven repayment options on student loans, and some people got their loans forgiven. Cody-Hopkins explained that it seems like the SAVE plan is dead, with former President Joe Biden no longer in office, and conservatives taking a stance against student debt relief. So what options will borrowers have, and how long will this play out?
"Public Service Loan Forgiveness is likely to survive, might be modified, but I think the concept and its provisions are likely to survive, the time-based programs will survive, the income-based programs, there's one that was put in place by Congress, there's some others that might survive but I think it's going to take at least a year for it all to play out, but I think the end result is there could be fewer and more expensive repayment plans left at the end of all this," Cody-Hopkins said.
Cody-Hopkins recommends staying up to speed with the latest developments from StudentAid.gov and reaching out to your loan provider for payment options or additional help.
Denver7 is committed to making a difference in our community by standing up for what's right, listening, lending a helping hand and following through on promises. See that work in action, in the videos above.