After two years of legal battles and confusion for student loan borrowers, a popular student loan repayment plan will be shut down — forcing over 7 million borrowers to find a new option.
On Friday the Department of Education alerted borrowers on the federal Saving on a Valuable Education plan that they would need to switch to a different federal repayment plan by the end of September.
The SAVE plan was implemented during the Biden administration, and offered lower monthly payments than other income-driven repayment plans. It also offered the opportunity for faster loan forgiveness.
Zampini recommends that borrowers stay informed and proactive by accessing their loan account, knowing their repayment plan, understanding their outstanding balance, identifying their servicer, and utilizing resources like the ED’s repayment calculator to compare plan options.
