Millions of student-loan borrowers are getting a reprieve from their monthly payments while litigation challenging the Biden administration’s repayment plan makes its way through the court system.
The 3 million borrowers eligible for the pause are enrolled in the SAVE program and have a monthly payment that is more than $0 a month, a Department of Education spokesperson said Friday. Borrowers whose loans are paused won’t see interest accrue while their payments are on hold.
The announcement comes days after two federal courts put parts of the SAVE program on hold. The Department of Education spokesperson said the agency would inform borrowers who are eligible for the pause directly over the coming days.
The pause marks the latest development in a battle between the Biden administration and Republican policymakers over the White House’s student-loan policy.
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