In response to ongoing legal challenges, the U.S. Education Department has announced a significant pause on student loan payments for approximately 3 million borrowers. This pause mirrors the pandemic-era moratorium, meaning affected borrowers will not be required to make payments and no interest will accrue on their loans during this period. The decision aims to alleviate financial pressure on borrowers while the courts review the legality of President Joe Biden's new loan-repayment program. This forbearance is part of the SAVE program, designed to recalibrate payments in accordance with recent court rulings that have temporarily blocked parts of the administration's broader debt relief efforts.
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