(NEXSTAR) — Despite two federal injunctions handed down last week, millions of student loan borrowers will not have to make a payment on their debt in July.
The one-month forbearance is part of what was intended to be a new phase of benefits for borrowers enrolled in the Saving on a Valuable Education plan, otherwise known as the SAVE plan.
In July, early forgiveness and other benefits were set to take effect for many SAVE borrowers, including recalculating and/or reducing the payments owed by many. As part of that process, impacted borrowers were set to be placed in “a brief processing forbearance” through July. That means they would not have to make a monthly payment and their interest rates would temporarily drop to 0%.
But, when two federal judges handed down two injunctions related to the SAVE program last week, the forbearance appeared to be in jeopardy.
What are the injunctions?
In one ruling, a Kansas judge determined the Education Department …