New student loan repayment plan looks to save Texans money in interest after Supreme Court decision

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Millions of Texans were affected following the Supreme Court shutting down Biden's plan, but a new program called SAVE and others are looking to lower monthly payments, check them out here.

Texans with college loans are expected to begin or resume making payments later this year after the U.S. Supreme Court struck down President Joe Biden's plan to forgive up to $20,000 in debt, and after other COVID-era relief ends.The high court on Friday struck a decisive blow to one of Biden's signature campaign promises when it declared his debt cancellation program was unconstitutional.

Here is what you need to know if you are one of the eight in 10 Texans with student loans who are not on an income-based repayment plan.Income-driven repayment plans set monthly payments as a percentage of the borrower's income, rather than the amount owed. This is supposed to make repayment easier on borrowers' wallets.

Finally, borrowers' monthly payments would be calculated as 5% of their discretionary income for undergraduates. They would remain at 10% for graduate students. Finally, the revised plan would allow married borrowers to file taxes separately so the monthly payment would not be calculated based on joint income.Consider a single undergraduate borrower earning $60,000 a year, according to tax returns.

 

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LARRY KUDLOW: Biden wants to ignore the Supreme Court's decisionFOX Business host Larry Kudlow gives his take on the Supreme Court striking down President Biden's student loan handout and affirmative action in college programs on 'Kudlow.'
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