Biden Administration Officially Launches a New Income-Driven Student Loan Repayment Plan

The Biden administration officially launched the new income-driven student loan repayment plan for borrowers Tuesday, ahead of repayments restarting this fall.

The official launch of the Saving on a Valuable Education (SAVE) plan comes just weeks before interest will begin to accrue on student loans for the first time in more than three years in September. Repayments will resume in October, although no financial consequences will come to borrowers if they are unable to pay for up to a year.

“Starting today, millions of borrowers can reduce their monthly student loan bills by enrolling in the SAVE plan, the most affordable repayment plan in history,” said Education Secretary Miguel Cardona. “The SAVE plan is another huge step forward in President Biden’s tireless efforts to fix the broken student loan system, reduce the burden of student debt on working families, and put borrowers first.”

Read the source article at The Hill