The Biden administration plans to extend an ongoing pause of student loan payments well into 2025 as the White House continues to push its latest student loan forgiveness program through the courts.
The pause affects nearly 8 million federal student loan borrowers enrolled in the Saving on a Valuable Education Plan. Payments for those in the SAVE Plan have been placed into an interest-free forbearance until at least April 2025. Borrowers were first placed in forbearance in July.
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The SAVE Plan was created by executive order in 2023 after the administration failed in its efforts to forgive up to $20,000 of federal student loan debt per borrower.
The SAVE Plan provides some borrowers with lower income-driven repayments, while others forgive borrowers' loans outright.
The White House said that student loan borrowers enrolled in the SAVE Plan who have made payments for at least 10 years and originally took out up to $12,000 are eligible to have their loans automatically forgiven.
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Many Republican state attorneys general have sued to stop the Biden administration from moving forward with the SAVE Plan. Earlier this month, U.S. District Judge Matthew Schelp granted an injunction blocking any widespread cancellation after a separate ruling said the Biden administration could move forward with forgiveness.
Department of Education officials have said they would defend the SAVE Plan in court.
It's unclear when a final ruling will be made as it's possible the decision could be appealed all the way to the Supreme Court, depending on the results of next month's presidential election.
