The Department of Education has established several Income-Driven Repayment (IDR) Plans over the years, which calculate monthly payments based on income and family size, often leading to lower monthly payments for student loan borrowers.
Prior to far-right legal challenges, the SAVE Plan proved to be incredibly popular and effective. 7.5 million borrowers had already started benefitting from the Plan, including 4.2 million borrowers who were paying $0 per month!
SAVE Plan Highlights
The Biden-Harris Administration’s SAVE Plan would make repayment much more affordable by:
- Reducing most borrowers’ monthly payments by increasing the income exempt from payment calculations from 150% to 225% of the federal poverty line.
- Limiting payments for borrowers with only undergraduate loans to no more than 5% of their non-exempt income.
- Providing that enrollees with undergraduate and graduate loans will pay a weighted average of between 5% and 10% of non-exempt income based on the original principal balances of their loans.
- Preventing interest accrual as long as you make your monthly payment, even if your payment is $0
Have further questions?
NEA members can consult student debt experts through the Student Debt Navigator for free assistance with student debt issues, including questions about SAVE and applying for Public Service Loan Forgiveness (PSLF).
For the latest news on student debt relief, text STUDENTDEBT to 48744. You will receive important updates and invitations to upcoming events and webinars.
