Borrowers on the SAVE plan could go well into next year without making any payments due to the ongoing legal challenges.
Federal student loan payments will remain paused for more than 8 million borrowers well into next year as the court battle over the Biden administration’s SAVE repayment plan continues.
The income-driven plan lowers borrowers’ monthly bills to as low as zero and offers a quicker pathway to the discharge of all remaining balances.
Before federal judges intervened, the Education Department enrolled more than 8 million borrowers, erasing more than $5 billion for 414,000 enrollees who initially owed $12,000 or less and had made 10 years of payments.
“The 8 million borrowers in SAVE and anyone who has applied for SAVE should expect to remain in interest-free general forbearance for six more months or longer as the Department re-programs its systems, pending further developments from the Eighth Circuit Court of…
