Student loans have somehow become one of the most complicated and politically charged aspects of personal finance. Given the prevalence of student loans, chances are you or someone you know has been impacted by recent activity or lack of activity regarding student loans. Below are several items to be aware of:
The broad cancellation that was proposed by the Biden administration (up to $20K per eligible borrower) was blocked by the Supreme Court at the end of June.
The SAVE plan (formerly New REPAYE) was finalized. This is a redo of the REPAYE plan- one of the income-driven repayment plans available to eligible borrowers. It was updated to generally be more generous to the borrower. That said, don't automatically assume it is better for you specifically. You can see more details in the article below.
The IDR Waiver is still in play. Borrowers are expected to receive updated payment counts at some point in 2023. This could result in many either receiving forgiveness or getting much closer to forgiveness.
Qualifying student loan payments have been paused since March of 2020 but they are expected to begin again in October. While the government has threatened many times to restart payments, it was pushed back many times. That said it appears most experts believe this time payments will actually begin.
Student loans are a little finicky so I would not recommend making changes without talking with a qualified professional.
StudentLoanPlanner - SAVE / New REPAYE Guide: Will Your Payments Be Lower?
Travis gives an overview of the updated plan. As I said above, I would recommend speaking with a qualified professional before making any changes to student loans.
Thank you for reading!
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