The Biden administration's SAVE (Saving on a Valuable Education) plan is set to bring relief to millions of borrowers with federal student loans. This new repayment plan, fully phased in this summer, offers lower monthly payments and potential debt cancellation after 10 years of payments for some borrowers.
Under the SAVE plan, monthly payments are based on a borrower's income and family size, rather than the amount of student debt. Starting in July, payments for undergraduate loans will be reduced from 10% to 5% of discretionary income, providing significant relief for many borrowers.
