Uncertainty continues for millions of borrowers after a federal court blocked the Biden administration’s Saving on A Valuable Education plan last week that’s designed to reduce student loan payments and provide forgiveness.

Also known as the SAVE plan, the 8th Circuit Court of Appeals ruled Friday that the Department of Education cannot move forward with it until other legal challenges brought on by prominently Republican-led states are hashed out.

“Most relevantly, Missouri is one of the plaintiffs,” said Sandy Budd, Education Debt Consumer Assistance Program’s (EDCAP) supervising attorney.

EDCAP is a state-funded program of the Community Service Society of New York dedicated to helping New Yorkers navigate repayment. According to the organization, there are about 2.4 million New Yorkers owing more than $90 billion in student loans.

With the SAVE plan, the borrower’s monthly payment is supposed to be better aligned with their income and family size. According to the Biden administration, the payments should also be less because it’s based on a smaller portion of a borrower’s adjusted gross income.

“MOHELA is a Missouri state agency that services federal student loans. It’s one of the largest student loan services in the country,” Budd explained. “They are challenging the SAVE plan on the basis that it will cost their agency money.”

It’s a lot for borrowers to digest because a lot of them are young adults. According to EDCAP, 45% of the people with student loan debt are 18- to 35-years-old.

As a result of Friday’s ruling, more than 8 million borrowers were notified their loans were in forebearance. According to the Department of Education, a borrower’s loan will not accrue interest with this status.

Budd described it as a “payment pause” while the litigation works itself out in the federal court system, which could take months or even years.

“If you are a borrower who is seeking public service loan forgiveness, you should reach out for some advice as to handle the current forbearance and the current repayment,” Budd said. “There are certain actions you could take that could affect their path to forgiveness under the public service loan program.”

New York borrowers looking for assistance are encouraged to contact EDCAP’s hotline at 888-614-5004, or email edcap@cssny.org.