Biden administration launches new income-driven student loan repayment program called 'SAVE'
PITTSBURGH (KDKA) -- The Biden administration has launched a new program to help people who are set to restart making student loan payments in October.
The new program called 'SAVE' is an income-driven repayment program and the new plan will be available to many borrowers with loans held by the Department of Education.
This comes following the Supreme Court's striking down of President Biden's previous student loan forgiveness program in late JUne.
The administration is encouraging borrowers to apply for the plan as soon as possible so that account changes will have time to take effect before the current years-long payment pause ends in October.
The White House says that the plan is based on the borrower's income and family size, not their loan balances.
Borrowers could cut their monthly payments in half or even have monthly payments of $0.
The payment pause ends this fall and 'SAVE' will be fully implemented by the summer of 2024.
20 million borrowers could benefit from the plan.
To learn more about the plan and to apply, click here.