Education Department to pause student loan payments for millions amid legal battle

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Education Department to pause student loan payments for millions amid legal battle
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The U.S. Department of Education says it will pause millions of student loan borrowers payments while it defends its SAVE repayment plan against legal challenges.

The U.S. Department of Education says it will pause millions of student loan borrowers payments while it defends its relief plan against legal challenges.

US President Joe Biden speaks about student loan debt relief at Madison Area Technical College in Madison, Wisconsin, April 8, 2024.The U.S. Department of Education says it will pause millions of student loan borrowers' payments while it defends its relief plan againsta ruling on Thursday blocking the entire plan, which the White House says roughly 8 million people are enrolled in.

SAVE comes with two key provisions that legal challenges have targeted: It has lower monthly payments than any other federal student loan repayment plan, and it leads to quicker debt erasure for those with small balances.

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