New income-driven student loan repayment plan available to borrowers
by Lexi Lonas - 07/31/23 9:27 AM ET
The Department of Education released a beta website Monday for the Biden administration’s new income-driven student loan repayment plan, known as the Saving on a Valuable Education (SAVE) plan.
“A beta version of the updated [income-driven repayment (IDR)] application is now available and includes the option to enroll in the new SAVE Plan — the most affordable repayment plan yet,” the department said on the site.
Previously, the administration had numerous IDR options for borrowers, which advocates have said led to a confusing system for borrowers.
The new SAVE plan will replace the Revised Pay As You Earn Repayment (REPAYE) plan, one of the most widely used of the four IDR options available to borrowers. The other three IDR plans will be phased out or limited by the department.
The SAVE plan will make three significant changes this year compared to the REPAYE option. The first raises the income exemption from 150 percent above the poverty line to 225 percent, meaning a single person earning less than $32,800 would have $0 monthly payments under the plan.
The plan also won’t allow unpaid interest to grow if a person is making their monthly student loan payments. Lastly, spousal income for borrowers who are married and file separately will not be included.
more
https://thehill.com/homenews/education/4128551-new-income-driven-student-loan-repayment-plan-available-to-borrowers/
