"Biden's SAVE Plan: Lowering Student Loan Bills and Reforming the System"
President Joe Biden's new income-driven repayment plan for federal student loans, called SAVE (Saving on a Valuable Education), will allow borrowers to lower their monthly bills and potentially have their remaining debt canceled after making at least 10 years of payments. Unlike Biden's blocked one-time forgiveness program, the SAVE plan will benefit both current and future borrowers. However, estimates suggest that the plan could cost the government between $138 billion and $361 billion over 10 years. The plan will replace the REPAYE plan and offer lower payments, an increase in the protected income threshold, an interest limit, and automatic recertification. It will also cut payments in half for undergraduate loans and shorten the time to forgiveness. Borrowers with federal student loans can switch to the SAVE plan or wait for the application to become available later this summer.