The Biden administration's new student loan repayment plan has enrolled 4 million people in the two weeks since it launched in late July, Education Department officials said on Tuesday.
The new plan, called the Saving on a Valuable Education (SAVE) plan, could lower monthly repayments for about 20 million borrowers. The SAVE plan debuted with a beta rollout and was ready for all applicants in mid-August.
The SAVE plan is an income-driven repayment program, or IDR, which pegs a borrower's monthly payment to their income, lowering their out-of-pocket costs. The Biden administration developed SAVE in response to criticisms about existing plans that had major pitfalls, such as allowing interest to snowball on a borrower's debt.
Of the 4 million enrollees so far, most were migrated from an earlier IDR plan called the REPAYE program, while 1 million additional borrowers have applied for the SAVE program since it opened for applications this summer, officials said on a Tuesday press call.
www.cbsnews.com
You wait, next will be new legislation that doesn't allow a bad credit score against these cheapskates.
Oh and get this.....They don't have to pay taxes on the forgiven amount.
Once approved, the government forgives the remainder of the federal loan balance. PSLF is one of the few programs that is excluded from federal income taxes; none of the forgiven loan amount is taxable as income.....Feel like a chump yet?
The new plan, called the Saving on a Valuable Education (SAVE) plan, could lower monthly repayments for about 20 million borrowers. The SAVE plan debuted with a beta rollout and was ready for all applicants in mid-August.
The SAVE plan is an income-driven repayment program, or IDR, which pegs a borrower's monthly payment to their income, lowering their out-of-pocket costs. The Biden administration developed SAVE in response to criticisms about existing plans that had major pitfalls, such as allowing interest to snowball on a borrower's debt.
Of the 4 million enrollees so far, most were migrated from an earlier IDR plan called the REPAYE program, while 1 million additional borrowers have applied for the SAVE program since it opened for applications this summer, officials said on a Tuesday press call.
Biden's new student debt repayment plan has 4 million signups. Here's how to enroll in SAVE.
Biden administration officials say the new federal program could cut monthly loan payments for 20 million people.
www.cbsnews.com
You wait, next will be new legislation that doesn't allow a bad credit score against these cheapskates.
Oh and get this.....They don't have to pay taxes on the forgiven amount.
Once approved, the government forgives the remainder of the federal loan balance. PSLF is one of the few programs that is excluded from federal income taxes; none of the forgiven loan amount is taxable as income.....Feel like a chump yet?
