What is Biden’s new income-driven student loan repayment plan?

Betsy Mayotte, TISLA president and founder, discusses Biden’s new SAVE Plan.

“There’s a couple of differences between this one and the other existing income-driven plans. The biggest positive change with this particular plan is that if your calculated payment ends up to be less than the amount of interest that accrues every month, that remaining interest will be forgiven.

What we were seeing with the other income-driven plans is that, yes, it created an affordable payment for borrowers, but a lot of times if the payment didn’t cover the interest, they were watching their balance grow. That’s not going to happen under this particular plan.”