Student Loan Borrowers in SAVE Get Six Months Free of Payments

Veuer

As first reported by CNBC, the White House says that people enrolled in the Saving on a Valuable Education or SAVE plan will not have to make payments on their federal student loan debt for at least another six months. Veuer’s Matt Hoffman reports.

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00:00The Biden administration's efforts to help those with student loans remain tied up in the courts,

00:04but some borrowers are still benefiting, at least for now. As first reported by CNBC,

00:09the White House says that people enrolled in the Saving on a Valuable Education, or SAVE, plan

00:15will not have to make payments on their federal student loan debt for at least another six months.

00:19Those enrollees will be placed in interest-free general forbearance. The government is awaiting

00:24instructions from the courts. SAVE itself is currently held up by an injunction from the

00:28U.S. Court of Appeals for the Eighth Circuit, according to CBS News. Even apart from the

00:33court challenges, the program's future will likely depend on the outcome of the presidential

00:37election, as Vice President Harris would be more likely to preserve SAVE than former President

00:41Trump. About 8 million people are currently enrolled in SAVE. The White House said in April

00:46that 4.5 million of them have a monthly payment of $0, meaning they are not accumulating interest.

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