08/02/2023

A New Student Loan Plan Could Cut Some Monthly Payments in Half

Here's what Americans need to know about applying

On July 30, 2023, the Biden Administration launched a new website detailing what it calls the “most affordable repayment plan ever” for student loan borrowers.

The website, which is still in its beta testing phase, opens applications to the Saving on a Valuable Education (SAVE) plan, which the White House announced on June 30. SAVE is replacing the existing Revised Pay-As-You-Earn (REPAYE) plan. The other three existing income-driven repayment plans, which provide borrowers with lower monthly payments that are tailored to their income and family size, will remain in place. Income-driven repayment plans may be appealing to some because borrowers will have their loan balance automatically forgiven after 20 or 25 years of payments, depending on the type of loan they took out.

The SAVE plan could cut payments on undergraduate loans by half compared to the other income-driven repayment plans. The new program was finalized on June 30 after the Supreme Court struck down Biden’s earlier student-loan relief plan. 

Please select this link to read the complete article from TIME.