Many student loan borrowers in the U.S. are pausing their payments again. Recent data shows that more than 25% of borrowers have stopped making payments for now. This is more than double the number from the same time in 2024.
How Many Borrowers Are Pausing Payments?
According to the U.S. Department of Education, about 10.3 million borrowers were in forbearance in the third quarter of 2025. Forbearance means payments are on hold. This number was only 2.9 million in 2024. Around 3.4 million are in deferment, which is also a type of payment pause, slightly higher than 3.2 million in 2024. In total, more than 13 million borrowers have paused their payments.
Why Are Payments Being Paused?
Many people are finding it hard to pay student loans while also managing other costs like childcare and housing. Forbearance and deferment give them temporary relief. Deferment is often for special cases like losing a job or being sick. Forbearance is for people who cannot afford payments for now.
The Role of the SAVE Plan Cancellation
A big reason for the increase in paused payments is the cancellation of the SAVE plan. This plan, started under the Biden administration, helped borrowers pay less each month. But it was stopped by the Trump administration in mid-2024 after legal challenges. All borrowers who were in this plan were put into forbearance automatically. About 7 million people were affected.
How Costs Are Changing for Borrowers
The end of the SAVE plan means many have to pay more now. For example:
| Annual Income | Payment Under SAVE | Payment Under IBR |
| $75,000 | $166/month | $429/month |
While pausing payments gives short-term help, interest keeps adding up. For a loan of $39,000, about $219 in interest can be added each month during the pause.
Problems in Changing Repayment Plans
Many borrowers are trying to switch to new income-based repayment plans. But there is a big delay. By July 2025, there were over 1.3 million applications waiting to be processed. This makes it hard for borrowers to find affordable options quickly.
Long-Term Risks of Pausing Payments
Financial experts warn that pausing payments for too long can make the loan bigger. Interest keeps growing, and this makes it harder to pay off later. This can delay important life plans like buying a home, starting a family, or saving for retirement.
What Borrowers Should Know
Borrowers need to understand that while payment pauses help now, they can lead to higher debt in the future. Many are stuck waiting for better repayment plans, while costs for basic needs keep rising.
FAQs
How many borrowers paused payments?
Over 13 million borrowers have paused their payments.
Why are so many pausing now?
Because the SAVE plan was cancelled and costs are high.
Does interest add during a pause?
Yes, in most cases interest keeps adding.
Can I change my repayment plan?
Yes, but there are delays in processing.
What is the biggest risk of pausing?
Your debt can grow larger over time.
