A federal appeals court has blocked the implementation of the Biden administration’s student debt relief plan, which would have lowered monthly payments for millions of borrowers.
That’s basically what the SAVE plan did. If you enrolled in it and made qualifying income-based payments that didn’t cover the interest on the loan, the interest wouldn’t capitalize and it would still count as a qualifying payment for PSLF. It wasn’t loan forgiveness, but it ensured that payers wouldn’t have their loan balances skyrocket while making income-driven repayments.
Yep. Except that was limited to anyone below 225% the poverty line (roughly 30k a year). I think should be expanded to <75k. Something closer to the actual poverty line depending on where you live.
No, that was applicable to anyone enrolled in the SAVE plan. If you made more money than that, you would have a small payment which was limited to 5% of your discretionary income (a number that excludes a portion of your income as non-discretionary for living expenses, etc). So if you made 75k/year, your payment would be 5% of the amount not designated as necessary living expenses. I’m not positive on the exact numbers, but I think they exclude about 60k before they start calculating your payment amount.
That’s basically what the SAVE plan did. If you enrolled in it and made qualifying income-based payments that didn’t cover the interest on the loan, the interest wouldn’t capitalize and it would still count as a qualifying payment for PSLF. It wasn’t loan forgiveness, but it ensured that payers wouldn’t have their loan balances skyrocket while making income-driven repayments.
Yep. Except that was limited to anyone below 225% the poverty line (roughly 30k a year). I think should be expanded to <75k. Something closer to the actual poverty line depending on where you live.
No, that was applicable to anyone enrolled in the SAVE plan. If you made more money than that, you would have a small payment which was limited to 5% of your discretionary income (a number that excludes a portion of your income as non-discretionary for living expenses, etc). So if you made 75k/year, your payment would be 5% of the amount not designated as necessary living expenses. I’m not positive on the exact numbers, but I think they exclude about 60k before they start calculating your payment amount.
Interesting. Good to know. I wasn’t aware that it was open to all. I thought it was low-income based student loan reform. Thanks for the info. =~)
As a medical student with an absurd amount of student loans, this stuff is very important to me.