India, Dec. 10 -- The U.S. Department of Education (ED) has moved to dismantle the income-driven SAVE Plan according to new policy changes announced on December 9.

Roughly 7.7 million federal student-loan borrowers will have to shift to alternative repayment plans and likely resume monthly payments.

As per the settlement between the ED and several states that had challenged SAVE in courts, the department will not enroll new borrowers and will deny pending applications.

They will begin transitioning existing participants to other plans such as Income-Based Repayment (IBR), Pay As You Earn (PAYE) or Income-Contingent Repayment (ICR), as reported by Business Insider. The ED claims that interest on loans under SAVE had already resumed in A...