Biden-Harris SAVE Plan aiming to create affordable options for student loan borrowers
SAVANNAH, Ga. (WTOC) - A new plan by the Biden-Harris administration will allow those who have student loans enroll in a new program that could save them thousands of dollars.
The application is on studentaid.gov and four million people have already signed up with about 180,000 in Georgia and 81,600 in South Carolina. Depending on how much money you borrowed for school, officials say the SAVE program will help some people’s payment down to $0 and save others around a $1,000 per year.
Some key points in the program:
- Payments on undergraduate loans from 10% to 5% of discretionary income
- More than a million low-income borrowers will qualify for a $0 payment until their income increases above $30,000
- As long as you keep up with your required payments you won’t be charged monthly interest that is not covered by your payment.
“I hear a lot confusion from borrowers about what is expected from them, and I want them to know that we have options available to them. The SAVE Plan is the most affordable plan ever especially for borrowers with high levels of debt and low incomes,” James Kvaal with the United States Department of Education said.
The plan has options for various income levels and levels of debt. For example, someone who makes $25,000 a year could have a $0 payment until you make more than $30,000.
The plan also provides an opportunity for early forgiveness when it comes to low-income borrowers.
“We are letting people repay for as few as 10 years and get that loan discharged if they went to college for two years or less or borrowed less than $12,000,” Kvaal explained.
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