Student Loan Forgiveness Update: SAVE Plan and More
SAVE Plan Implementation in July 2024
The Department of Education will implement the remaining full benefits of the SAVE Plan in July 2024. This will further reduce monthly loan payments from 10% of a borrower's discretionary income to 5%.
Biden's Student Loan Forgiveness Plan
Biden's first student loan forgiveness plan required borrowers to submit an online application to request relief. However, the new plan does not have an application process.
Public Service Loan Forgiveness (PSLF) Program Changes
Federal Student Aid implemented regulatory changes to the PSLF Program effective July 1, 2023. These changes simplify the process of qualifying for loan forgiveness and make it easier for borrowers to track their progress.
IDR Forgiveness Update
Due to recent changes, past periods of repayment deferment and forbearance may now count toward IDR forgiveness. Additionally, borrowers with certain non-Direct Loans will need to consolidate their loans before they qualify.
Additional Student Loan Debt Relief Approved
The Biden-Harris Administration has approved $58 billion in additional student loan debt relief for 777,000 borrowers. This relief is expected to reach borrowers in the coming months.
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