President Biden’s previously announced changes to Income-Driven Repayment under the SAVE plan is now full implemented. Borrowers have an increase in discretionary income protection. This income protection has increased from borrower AGI from tax return minus 150% of poverty level now up to 225%. Undergraduate debt will account for only 5% of discretionary down from 10%. Any unpaid interest not covered in borrower monthly payments will now be forgiven. Borrowers enrolled in the SAVE repayment plan will see all outstanding debt forgiven after 20-25 years. Payments made prior to 2024 will count towards maximum forgiveness timeframes. Borrowers already on the REPAYE plan will automatically be enrolled in SAVE and their payments will be adjusted with no action on their part.
For more details view the Department of Education’s Fact Sheet
