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Biden Administration’s SAVE Plan to Reduce Student Loan Payments for Millions Starting in July: Over 8 Million Already Enrolled

(photo: CNN)

From July onwards, millions of borrowers will experience reduced monthly student loan payments under the Biden administration’s newly introduced SAVE repayment plan.

Millions of Borrowers to See Monthly Student Loan Payments Reduced Starting in July

Starting July, Biden’s SAVE plan cuts student loan payments based on income and family size, not total debt. Undergrad payments drop from 10% to 5% of income. 8 million+ enrolled but delays led to a brief forbearance for accurate adjustments, according to the report of CNN.

READ ALSO: St. Louis Guaranteed Basic Income Program Faces Lawsuit Over $4 Million Fund Distribution

(photo: The New York Times)

Biden Administration’s Bold Move on Student Debt Relief and Its Legal Hurdles

The SAVE plan prevents interest from accumulating if payments are too low and offers loan forgiveness after 10 years for those with $12,000 or less in debt. Since February, $5.5 billion has been canceled for 414,000 people. The plan faces legal challenges and cost estimates range from $138 billion to $475 billion over the next decade. In July, millions of borrowers will benefit from reduced payments, marking a key reform by the Biden administration.

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