Washington — The Department of Education will pause student loan payments for 8 million borrowers after a federal appeals court temporarily blocked a repayment plan that the Biden administration launched last year. Reducing student loan debt has been a priority for the Biden administration and the SAVE plan is one of the most significant policy changes it has made. Like other existing student loan repayment plans, SAVE ties a borrower’s monthly payments to their income and family size. But SAVE is the most generous plan for low-income borrowers, offering lower payments and a faster path to student loan forgiveness. The SAVE plan opened last year, after the Supreme Court struck down Biden’s sweeping, one-time student loan forgiveness program before it took effect.

Source: CNN July 19, 2024 14:44 UTC