SAVE Student Loan Deadline Next Week: What Borrowers Should Know
Summary
Some federal student loan borrowers who were on the now-ended SAVE repayment plan must choose a new plan soon or be moved automatically to the Standard or Tiered Standard Repayment Plan. Deadlines vary by borrower, starting as early as September 29, and those who do not decide may face higher payments because the new plans do not consider income.Key Facts
- The SAVE repayment plan ended following a federal court order earlier this year.
- Borrowers received notices starting July 1 and have 90 days from their notice date to pick a new repayment plan.
- The first deadline is September 29 for borrowers who got the earliest notices. Others have later deadlines based on when they were contacted.
- If borrowers miss the deadline, they will be moved to the Standard or Tiered Standard Repayment Plan automatically.
- Standard plans have fixed monthly payments based on the loan balance, not income, over 10 to 25 years depending on the plan.
- The Tiered Standard Plan started July 1 and sets fixed payments over 10, 15, 20, or 25 years based on how much is owed.
- Borrowers can use the federal Loan Simulator tool to compare monthly payments of available plans before choosing.
- Missing the deadline may lead to higher payments if the automatic selection does not match the borrower’s ability to pay.
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