3 million student loan borrowers to be placed in payment pause

In response toearlier this week that blocked key components of a student loan policy, the Biden administration is planning to place about 3 million student loan borrowers into a monthslong payment pause.

In a Thursday night appeal of the Kansas decision, the Department of Justice said the government would need to place borrowers into a pause in order to comply with the judge's ruling on the monthly payment aspect, and instead asked for an emergency motion to stop the ruling from going into effect. Borrowers enrolled in SAVE were already placed into forbearance, also known as a payment pause, for the month of July in an attempt to smoothly transition to the lower payment calculation, prior to the court rulings. Should the judges not grant the federal government it's request, that forbearance is slated to continue into the coming months.

Of course, the setback is now part of a pattern for Biden's attempts at major changes to the student loan system. And the administration is continuing to work on a Plan B to Biden's initial, widespread debt relief proposal, taking a narrower approach that could cancel debt for about 30 million people in total, including the people who've already had debts canceled.

Loan Loan Latest News, Loan Loan Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Millions of student loan borrowers won’t owe a July payment: Here’s whyMillions of student loan borrowers will be able to skip their July payments.
Source: aldotcom - 🏆 82. / 68 Read more »

Fact Check Team: 29% of borrowers say student loan debt will impact their voteNearly half of borrowers (46%) call student loan debt a national crisis.
Source: komonews - 🏆 272. / 63 Read more »

You may not have to make a student loan payment in July—what borrowers need to knowAs the Department of Education works with student loan servicers to update borrowers’ monthly payment amounts, some will get to skip a month.
Source: NBCNewYork - 🏆 270. / 63 Read more »

You may not have to make a student loan payment in July—what borrowers need to knowAs the Department of Education works with student loan servicers to update borrowers’ monthly payment amounts, some will get to skip a month.
Source: nbcchicago - 🏆 545. / 51 Read more »