Some student loan payments will remain paused for at least the next six months, according to the U.S. Department of Education.
About 8 million borrowers will be covered by the court-ordered pause to the federal Saving on a Valuable Education, or SAVE, plan.
The pause comes as the Biden administration continues to fight legal battles over other student loan relief and forgiveness efforts, according to CNBC, which reported the development earlier this week.
Borrowers currently enrolled in the SAVE plan will be temporarily excused from their monthly payments without their existing balances accruing interest, CNBC reported.
The initiative comes after a federal court ordered the government to stop the implementation of part of the SAVE plan, which adjusts payments based on a borrower's income and family size, as opposed to their loan balances and debt after a certain number of years.
When the SAVE plan was first launched, the plan was to cut many borrowers' monthly payments to zero while others could save around $1,000 a year, according to a statement from the White House.
Republican groups who have led legal challenges against the program, argue the Biden administration is "essentially trying to find a roundabout way to forgive student loan debt after the Supreme Court blocked its sweeping debt cancellation plan in June 2023," according to CNBC.
The lawsuits targeted two provisions in the SAVE plan: The lower monthly payments it offers which are lower than any other federal loan repayment plan, and its quicker debt erasure for borrowers with small balances.