Your Student Loan Payment Plan Could Get Eliminated — Here’s Why

SAVE is effectively replacing another IDR plan called Revised Pay As You Earn . Borrowers who are already enrolled in REPAYE will automatically be able to receive the new features and benefits of the SAVE plan. Future borrowers will not be able to enroll in REPAYE after July 2024.But REPAYE is not the only IDR plan that will be eliminated by SAVE.

While SAVE will have many features and benefits that will make it a better and more affordable program than other IDR plans for most borrowers, this will not be universally true. PAYE, for example, has a 20-year repayment term for all eligible borrowers before reaching the threshold for student loan forgiveness. In contrast, SAVE will only have a 20-year term for borrowers with undergraduate loans; borrowers with graduate school loans would be on a 25-year term.

Thus, borrowers who are considering enrolling in SAVE should make sure it’s the right long-term student loan repayment approach before doing so. Borrowers who don’t switch to SAVE should continue to have access to their current IDR plan, as long as they remain enrolled.It’s not just the Biden administration working to eliminate some IDR options.

“Current borrowers paying under one of the existing fixed repayment plans eliminated under the bill will be able to continue paying under those plans or choose to pay under the standard 10-year plan or the new IDR assistance plan,” according to areleased in June. Meanwhile, the bill “automatically places current borrowers paying under an income-based or income contingent plan in the new IDR plan.”

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Your monthly student-loan bill could get a lot lower with new SAVE payment planYour student-loan balances won’t grow even if the monthly payment is too low to cover the interest – if you are able to enroll in the Biden administration’s new payment plan. Check your eligibility 👇
Source: MarketWatch - 🏆 3. / 97 Read more »

How Biden's SAVE student loan repayment plan can lower your bill | CNN PoliticsWhile the Supreme Court struck down President Joe Biden’s student loan forgiveness program last month, a separate and significant change to the federal student loan system is moving ahead.
Source: CNN - 🏆 4. / 95 Read more »

'SAVE' plan: What to know about Biden's alternate approach to cut student loan debtUnder the SAVE plan, the typical student loan borrower would save about $1,000 a month, the president said.
Source: fox32news - 🏆 547. / 51 Read more »

Biden plan to cut student loan payments to $0 for millions may be next legal battleStarting this summer, millions of Americans with student loans will be able to enroll in a new repayment plan that offers some of the most lenient terms.
Source: wsfa12news - 🏆 338. / 59 Read more »

A better, bipartisan step toward fixing the student loan crisisLast month, the Supreme Court correctly struck down the Biden administration’s politically expedient attempt to forgive up to $20,000 of student loans for 40 million borrowers. The administration has pushed forward with other proposals, including modifying existing forgiveness programs and going…
Source: dcexaminer - 🏆 6. / 94 Read more »

Student loan debt could be paid off to attract employees in CaliforniaLos Angeles County is trying to help its employees pay back their student debt so they can buy homes and have kids, things that they have been putting off.
Source: Newsweek - 🏆 468. / 52 Read more »