More than 20 million borrowers are eligible under the new repayment plan, and many will see lower payments.
The program will calculate monthly payments based on the borrower's income and family size. The administration estimates that under SAVE more than a million borrowers will qualify for $0 monthly payments, while the average borrower will save about $1,000 a year. The new plan also seeks to prevent interest from exploding.
Under the SAVE plan, as long as borrowers make their monthly payments, interest will not accumulate. With previous plans, borrowers with low or $0 payments — too low to cover their monthly interest charge — saw that interest accrue. Now, the government says, that won't happen. "This is a big new loan forgiveness policy, particularly for undergraduates," says Jason Delisle, who studies higher education at the Urban Institute.
Those with Federal Family Education Loans or Perkins Loans that are held by a commercial lender would need to consolidate that debt into a federal direct loan in order to qualify.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Banks Don’t Love Rich Mortgage Borrowers as Much as They Used ToThe Federal Reserve’s interest-rate hikes and recent bank failures mean lenders aren’t competing so fiercely for jumbo loans.
Leer más »
Student loan payments set to resume next week: What borrowers need to knowFederal student loan payments are to resume in October after a three-year moratorium, setting up a potential financial shock for millions of households.
Leer más »
When student loan payments restart, many borrowers may have a different servicerYou may have a difference servicer when federal student loan payments resume in October.
Leer más »
New student loan repayment plans could cut monthly payments for 20 million borrowersMonthly loan payments may drop, based on a borrower's income.
Leer más »
Feds say company used 'Biden Loan Forgiveness' to scam borrowersTwo companies are accused of taking advantage of the uncertainty in student loan debt forgiveness to scam borrowers.
Leer más »
Biden bails out more student loan borrowers after Supreme Court rejectionPresident Biden unveiled his latest attempt to forgive student loan debt on Tuesday, months after the Supreme Court struck down his first handout.
Leer más »