The launch of the Saving on a Valuable Education plan is an attempt by the Biden administration to cut student loan payments in half or even require zero payment for some borrowers.

SAVE Now! Know More About Saving On a Valuable Education Plan. (Photo: MyBankTracker)

What is (SAVE) Saving On a Valuable Education Plan?

The Saving on a Valuable Education plan comes before interest begins to accumulate on student loans in September, and repayments start in October. Saving on a Valuable Education plan shall replace the (REPAYE) Revised Pay As You Earn plan. This means that borrowers under the REPAYE plan are automatically enrolled in the Saving on a Valuable Education plan.

Moreover, Saving on a Valuable Education plan will compute the monthly payments based on a borrower’s income and family size, offering the lowest monthly payment requirement of any IDR plan to almost all student borrowers. Note, however, that Saving on a Valuable Education plan is only applicable to those with direct loans in good standing.

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How Can You Enroll In Saving On A Valuable Education Plan?

Enrolling in Saving on a Valuable Education plan will cut 5% of discretionary income toward repaying undergraduate loans or 10% for graduate loans, or a weighted average if your student loan balance includes both. Application takes less than a few minutes, the application portal can be accessed here https://studentaid.gov/idr/.

READ ALSO: Student Loan SAVE Program Cuts Monthly Payments in Half for Eligible Borrowers – Apply Now and Save!