Millions of Federal Student Loan Borrowers May Skip July Payment: Biden Admin

Millions of federal student loan borrowers may skip their monthly payments in July while the federal government recalculates their bills. In August, the U.S. Department of Education rolled out the SAVE Plan, an income-driven repayment (IDR) plan aimed at making payments more affordable for low-income borrowers with a shorter timeline toward the eventual discharge of their remaining balances. The Education Department already started implementing some of SAVE’s “most generous” offers ahead of schedule, including debt cancellation for borrowers who originally took out $12,000 or less in loans and have made at least 10 years of monthly payments. It also brought 4.6 million borrowers’ monthly payments down to as low as $0....