FILE - In this Friday, May 12, 2006, file photo, university students in their caps and gowns are silhouetted as they line up for graduation ceremonies in Lawrenceville, N.J.Millions of student loan borrowers will be able to skip their July payments and pay lower amounts in the following months due to the implementation of the Biden administration’sthat borrowers have been notified they will not have to make payments in July to allow for recalculation using the income-driven SAVE plan.
“We look forward to providing millions of borrowers with lower monthly payments as part of the Biden-Harris Administration’s work to provide the most affordable student loan repayment plan ever,”Starting July 1, borrowers under the SAVE plan will see their monthly payments drop by as much as half. Previously, payments for undergraduate degrees were capped at 10% of a borrower’s discretionary income but that will drop to 5% under SAVE.
For example, the Department of Education said a current borrower paying $130 a month would see their undergraduate loan cut to $65 a month. Someone with graduate and undergraduate loans would pay $108; graduate loan borrowers would pay $130.If you purchase a product or register for an account through a link on our site, we may receive compensation.