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You may not have to make a student loan payment in July—what borrowers need to know

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It's not often student loan borrowers are excited to see their monthly billing statement.

But federal borrowers on the Saving on a Valuable Education income-driven repayment plan may be eagerly awaiting their July billing statements that will show an even-further reduced payment.

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When the SAVE plan rolled out last year, monthly payments were calculated as 10% of a borrower's discretionary income — the amount of money they make over 225% of the federal poverty limit. But this July, that payment will drop to 5% of discretionary income for those with only undergraduate loans, meaning borrowers could see their monthly bills cut in half.

However, as with some of the other process changes and updates the Department of Education has rolled out in the last year, this one won't be a seamless transition for everyone.

Some servicers say they are awaiting updated payment calculations from ED, The New York Times reports. The Department has sent the appropriate information to loan servicers for nearly 1 million borrowers and "some of those borrowers should see updated billing statements for July," an ED spokesperson told CNBC Make It via email.

But loan servicers have been instructed to pause payments in July for some borrowers enrolled in the SAVE plan while their new monthly payments are calculated and their accounts updated.

"As the department finalizes preparations for the full universe of borrowers eligible for lower monthly payments, some borrowers may be placed in a brief processing forbearance to ensure they can access the full benefits of the SAVE Plan and that their new payment amounts are accurate," the ED spokesperson said.

Borrowers placed in this forbearance will not need to make a payment in July, will not see interest accrue and will still get credit toward Public Service Loan Forgiveness or IDR forgiveness payment counts.

Loan servicers have begun notifying the affected borrowers who will not need to make payments in July. The July payment is entirely skipped and borrowers won't need to make additional payments in August, the ED spokesperson confirmed.

The 4.6 million borrowers who qualify for $0 monthly payments on the SAVE plan will not need to go into forbearance, the department said.

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