"Biden's New Student Loan Repayment Plan: Calculate Your Bill and Find Out How Much You'll Save"

The Biden administration has introduced a new federal student loan repayment plan called SAVE (Saving on a Valuable Education), which calculates monthly payments based on a borrower's income and family size. The plan aims to lower monthly payments for millions of borrowers, particularly low-income individuals. Under SAVE, unpaid interest will not accrue if a borrower makes a full monthly payment, and there is a forgiveness component after making at least 10 years of payments. However, while the plan may reduce monthly payments, it could extend the time it takes to pay off the loan and potentially result in paying back more over time with interest. Borrowers can apply for the SAVE plan through the Federal Student Aid website. Once fully implemented in July 2024, many borrowers will see their monthly payments cut in half.