awaiting their July billing statementslast year, monthly payments were calculated as 10% of a borrower's discretionary income — the amount of money they make over 225% of the federal poverty limit. But this July, that payment will drop to 5% of discretionary income for those with only undergraduate loans, meaning borrowers could see their monthly bills cut in half.
But loan servicers have been instructed to pause payments in July for some borrowers enrolled in the SAVE plan while their new monthly payments are calculated and their accounts updated.
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