"Many student loan borrowers received some relief when the U.S. Department of Education paused payments, collections and interest on most federal student loans in March 2020 due to the coronavirus pandemic," U.S. News & World Report writes.
..."The Biden administration recently announced a new income-driven repayment option, SAVE, or the Saving on a Valuable Education plan. In this plan, monthly payments decrease from 10% to 5% of a borrower's discretionary income, and no one earning less than the equivalent of $15 an hour annually will have to make payments.
'With the SAVE plan, negative amortization is going away, so you will not see your balance grow and grow and grow as you are just sort of crossing your fingers and hoping that PSLF is going to work out for you in 10 years,' says Jill Desjean, a senior policy analyst with the National Association of Student Financial Aid Administrators."
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 7/31/2023