By the time payments resume in October after the yearslong pandemic pause, some borrowers will be able to enroll in a new income-driven repayment plan that could lower their monthly bills and reduce the amount they pay back over the lifetime of their loans. Once the plan, which Biden is calling SAVE , is fully phased in next year, some people will see their monthly bills cut in half and remaining debt canceled after making at least 10 years of payments.
Payments could be $0 Under the SAVE plan, monthly payments can be as small as $0. Other income-driven repayment plans already offer a $0 monthly payment for some borrowers. But the new SAVE plan lowers the qualifying threshold. A single borrower earning $32,800 or less or a borrower with a family of four earning $67,500 or less will see their payments set at $0 if enrolled in SAVE.