More than 7 million U.S. student loan borrowers will be required to choose new repayment plans after a federal court struck down the Biden-era SAVE program. The U.S. Department of Education said borrowers enrolled in the SAVE plan have been in forbearance since July 2024. Loan servicers will begin sending notices from July 1, giving borrowers 90 days to transition into a new repayment plan.
Higher Payments And Policy Shift
Most borrowers are expected to face higher monthly payments. The SAVE plan had allowed payments as low as 5% of discretionary income and offered faster pathways to loan forgiveness for smaller balances. Alternative income-driven plans now typically require at least 10% of discretionary income.
The policy shift follows a ruling by the U.S. Court of Appeals for the 8th Circuit, …Full story available on Benzinga.com
Tech Life
...
Read moreDetails
