Millions of borrowers have been granted a temporary reprieve from their student loan repayments due to legal disputes surrounding the repayment plan.

• Millions of borrowers have had their monthly student loan payments put on hold due to legal battles surrounding the Biden administration's new student loan repayment plan.
• "Higher education expert Mark Kantrowitz stated that borrowers are frustrated with the delay in achieving loan forgiveness. They feel as though they are waiting for an elusive figure, similar to the character of Godot in Samuel Beckett's play."

The Biden administration's new student loan repayment plan is currently being contested in legal battles, resulting in millions of borrowers having their monthly payments temporarily suspended.

The relief from bills that federal student loan borrowers enrolled in the Saving on a Valuable Education plan, known as SAVE, may be causing them anxiety over the fact that they won't get credit on their timeline to debt forgiveness.

Those enrolled in the Public Service Loan Forgiveness program who are eligible for loan cancellation after 10 years have seen their progress toward relief halted during the forbearance.

"Higher education expert Mark Kantrowitz stated that borrowers are frustrated with the delay in achieving loan forgiveness. They feel as though they are waiting for an elusive figure, similar to the character of Godot in Samuel Beckett's play."

Borrowers enrolled in SAVE should be aware of the delay in debt cancellation.

Delay could stretch on for months

The U.S. Department of Education announced in October that about 8 million federal student loan borrowers will continue to be in an interest-free forbearance until the courts make a decision on the SAVE plan.

An injunction from a federal court earlier this year halted the Education Department from implementing certain aspects of the SAVE plan, which the Biden administration had touted as the most affordable student loan repayment plan ever. Under the SAVE plan, many individuals believed their monthly payments would be reduced by half.

Unlike the Covid-era pause on federal student loan payments, the forbearance does not aid borrowers in achieving debt forgiveness under an income-driven repayment plan or Public Service Loan Forgiveness.

"Those enrolled in the SAVE Plan were not given the option of forbearance, which adds to borrowers' frustration, as they cannot choose to pause their payments if they wish to remain in the program," stated Elaine Rubin, director of corporate communications at Edvisors, a company that assists students in managing their college expenses and loans.

Public service loan forgiveness (PSLF) borrowers are particularly worried, according to Kantrowitz. This program demands that borrowers work in public service while repaying their student loans.

""Some borrowers are working a job they hate, but are sticking with it in the hope of qualifying for forgiveness. Others are close to retirement and don't want to have to work past their normal retirement age just to get the forgiveness," he said."

What borrowers can do

Although it takes time to forgive, there are still some benefits for borrowers to remain in SAVE, according to experts. During the forbearance period, borrowers are not required to make payments and their debt does not accumulate interest.

The Education Department advises that payments made under SAVE during forbearance will only be applied towards future payments owed once the pause ends.

You can explore alternatives to get back on track with debt cancellation.

If you switch to a different income-driven repayment plan, you may need to start making payments again. However, if you earn under $20,000 as a single person, your monthly payment could still be $0, so switching might not result in any financial loss, according to Kantrowitz.

Holiday costs can be easily afforded by those who can pay off their credit card balances quickly.

Experts suggest that changing plans may be particularly appealing to those who are close to achieving debt forgiveness and simply want their balance to be erased. If this happens, you will likely be put on a processing forbearance while your loan servicer makes the switch. During this time, you will receive credit toward forgiveness.

The Education Department offers public service workers the chance to "buy back" months in their payment history, allowing them to cover previous months for which they didn't receive credit. However, to be eligible for this option, the purchased months must bring the borrower to the 120 payments required for loan forgiveness.

"If the buyback option is eliminated under the Trump administration, Kantrowitz advises using it now."