In response to court rulings blocking key elements of the federal government’s new student loan repayment program, the Biden administration will be giving approximately 3 million borrowers a reprieve from their monthly payments.
The 3 million borrowers eligible for the pause are enrolled in the income-driven repayment program dubbed SAVE, and have a monthly payment that is more than $0 a month, the U.S. Department of Education said. About 4.5 million SAVE enrollees who qualify for $0 payments because of low incomes will not be included in the pause.
The payment pause is similar to the COVID-19 student loan relief that lasted three and a half years from March 2020 through September 2023, during which borrowers didn’t have to pay monthly bills and interest didn’t accrue….