Student loan borrowers can now apply for the new income-driven repayment plan before payments are set to resume in October.
On Sunday, the Biden Administration launched a beta website for its new SAVE (Saving on a Valuable Education) Plan, as reported by CNN (via ABC 11).
The plan was finalized after Biden’s initial plan for student loan forgiveness was struck down by the U.S. Supreme Court in June. The new plan could lower monthly loan payments and reduce the amount they pay back over time.
“Part of the president’s overall commitment is to improve the student loan system and reduce the burden of student loan debt on American families,” a senior administration official said, previewing the beta website first to CNN. “The SAVE plan is a big part of that. It is important in this moment as borrowers are getting ready to return to repayment.”
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Enrollment is now open on https://studentaid.gov/idr/. The process takes roughly 10 minutes, and many sections can be populated automatically with existing government information.
One official says that the site can show exact monthly payment amounts, giving borrowers the power to choose the most affordable plan.
Unlike past systems, borrowers will only have to apply one time. Also, those in the current REPAYE (Revised Pay As You Go) Plan will be automatically enrolled.
Read more about the plan HERE.
