Millions of Student Loan Borrowers to Skip July Payments Under New SAVE Plan

The Biden administration's updated repayment formula cuts payments in half for undergraduate loans, with borrowers placed in temporary forbearance.

Over 8 million borrowers enrolled in the SAVE plan will see reduced payments starting July 1.
Monthly payments for undergraduate loans will drop from 10% to 5% of discretionary income.
Loan servicers are recalculating payments, leading to a temporary administrative forbearance for July.
Borrowers will receive credit toward loan forgiveness during this forbearance period.
Legal challenges to the SAVE plan continue, with rulings expected soon.