{"id":35127,"date":"2023-07-13T10:37:44","date_gmt":"2023-07-13T14:37:44","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/your-student-loan-payment-plan-could-get-eliminated-heres-why\/"},"modified":"2023-07-13T10:37:46","modified_gmt":"2023-07-13T14:37:46","slug":"your-student-loan-payment-plan-could-get-eliminated-heres-why","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=35127","title":{"rendered":"Your Student Loan Payment Plan Could Get Eliminated \u2014 Here\u2019s Why"},"content":{"rendered":"
\n

The student loan pause is coming to an end, and millions of Americans are barreling toward repayment.<\/p>\n

Borrowers have more student loan payment plan options than ever before. There is a confusing array of programs, each with their own methods for calculating monthly student loan payments. Borrowers have a lot of factors to consider when choosing a payment plan.<\/p>\n

But many may not realize that enrolling in a new Biden administration initiative could wind up cutting them off from several other student loan repayment plans. And a Republican-led proposal would eliminate several student loan payment plans, as well.<\/p>\n

Here\u2019s what borrowers need to know.<\/p>\n

Biden\u2019s New SAVE Plan Replaces REPAYE When Student Loan Payments Resume<\/h2>\n

<\/fbs-ad><\/p>\n

Last month, the Biden administration unveiled the Saving on a Valuable Education (SAVE) plan. This new Income-Driven Repayment, or IDR, plan is designed to be more affordable than other options. SAVE will lower student loan payments for most borrowers compared to other IDR plans, and will also include several other beneficial features including interest subsidies and new flexibilities for married borrowers. The SAVE plan will be phased in over the course of the next year, but several benefits will be available to borrowers when student loan payments resume later this summer.<\/p>\n

SAVE is effectively replacing another IDR plan called Revised Pay As You Earn (REPAYE). Borrowers who are already enrolled in REPAYE will automatically be able to receive the new features and benefits of the SAVE plan. Future borrowers will not be able to enroll in REPAYE after July 2024.<\/p>\n

New Student Loan Repayment Plan Could Cut Off Access To Other Programs<\/strong><\/h2>\n

But REPAYE is not the only IDR plan that will be eliminated by SAVE. When the Biden administration first proposed overhauling IDR last year, officials had indicated that they wanted to simplify and streamline IDR, which has multiple student loan repayment plan programs, each with their own confusing features and methodology.<\/p>\n

That original intent to simplify IDR is now codified in the new SAVE regulations \u2014 possibly to the detriment of some borrowers. Under the new regulations, borrowers who choose to switch to SAVE from other IDR plans, such as Income Contingent Repayment (ICR) or Pay As You Earn (PAYE), will not be able to re-enroll in those plans after July 1, 2024. This is a significant policy shift, as up until now borrowers have largely been free to change IDR programs.<\/p>\n

While SAVE will have many features and benefits that will make it a better and more affordable program than other IDR plans for most borrowers, this will not be universally true. PAYE, for example, has a 20-year repayment term for all eligible borrowers before reaching the threshold for student loan forgiveness. In contrast, SAVE will only have a 20-year term for borrowers with undergraduate loans; borrowers with graduate school loans would be on a 25-year term. This could make PAYE a more attractive option in certain cases \u2014 but switching to SAVE could close the door on that shorter student loan forgiveness term.<\/p>\n

Switching to SAVE could also impact borrowers on the ICR plan. ICR is typically the most expensive IDR plan and won\u2019t make financial sense for most borrowers. But ICR has a unique two-track formula for calculating student loan payments. And in some cases for borrowers with relatively low balances relative to their incomes, ICR can be a more attractive repayment option for borrowers who must be on an IDR plan \u2014 such as for borrowers pursuing Public Service Loan Forgiveness. But as with the PAYE plan, borrowers who leave ICR for the SAVE plan cannot return to ICR after July 1, 2024.<\/p>\n

Thus, borrowers who are considering enrolling in SAVE should make sure it\u2019s the right long-term student loan repayment approach before doing so. Borrowers who don\u2019t switch to SAVE should continue to have access to their current IDR plan, as long as they remain enrolled.<\/p>\n

Republicans Propose Overhauling Student Loan Payment Plans<\/h2>\n

It\u2019s not just the Biden administration working to eliminate some IDR options. Last month, Republican congressional leaders unveiled the Federal Assistance to Initiate Repayment (FAIR) Act, a collection of bills that would transform the federal student loan system.<\/p>\n

The FAIR Act would eliminate most existing federal student loan repayment plans, including the current IDR system, and replace them with just two payment plans: a Standard plan, and an IDR plan. The new IDR plan would not be as generous as Biden\u2019s SAVE plan, but would instead be somewhat similar to the current versions of PAYE and REPAYE.<\/p>\n

\u201cCurrent borrowers paying under one of the existing fixed repayment plans eliminated under the bill will be able to continue paying under those plans or choose to pay under the standard 10-year plan or the new IDR assistance plan,\u201d according to a fact sheet released in June. Meanwhile, the bill \u201cautomatically places current borrowers paying under an income-based or income contingent plan in the new IDR plan.\u201d<\/p>\n

The FAIR Act has little to no chance of passing in the current Congress, given that Democrats control the Senate and the White House. But it illustrates that there is a bipartisan appetite for eliminating some IDR options.<\/p>\n

What Borrowers Should Do As Student Loan Payments Resume<\/h2>\n

Borrowers are facing unprecedented confusion as the student loan pause comes to an end and payments resume after a three year hiatus.<\/p>\n

According to the Education Department, the student loan pause officially ends at the end of August. Interest will start accruing again in September, and student loan payments will resume in October.<\/p>\n

Borrowers should start evaluating their repayment options now at StudentAid.gov. Borrowers should also log in to their StudentAid.gov portal to update their contact information and confirm who their student loan servicer is. Millions of borrowers have experienced student loan servicing changes during the last three years, and may not even know it.<\/p>\n

On When Student Loan Payments Resume<\/strong><\/h2>\n

4 Big Student Loan Updates When Payments Resume (And They Resume Soon)<\/p>\n

6 Key Student Loan Forgiveness And Repayment Dates To Write Down Now<\/p>\n

9 Key Facts About Biden\u2019s New Student Loan Payment Plan, And How To Apply<\/p>\n

Here\u2019s When Student Loan Payments Resume, And What Borrowers Should Do Now<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The student loan pause is coming to an end, and millions of Americans are barreling toward repayment. Borrowers have more student loan payment plan options than ever before. There is a confusing array of programs, each with their own methods for calculating monthly student loan payments. Borrowers have a lot of factors to consider when […]<\/p>\n","protected":false},"author":1,"featured_media":35128,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[236],"tags":[83],"class_list":["post-35127","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-featured"],"yoast_head":"\nYour Student Loan Payment Plan Could Get Eliminated \u2014 Here\u2019s Why | iFintechWorld<\/title>\n<meta name=\"description\" content=\"The student loan pause is coming to an end, and millions of Americans are barreling toward repayment. Borrowers have more student loan payment plan\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=35127\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Your Student Loan Payment Plan Could Get Eliminated \u2014 Here\u2019s Why | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"The student loan pause is coming to an end, and millions of Americans are barreling toward repayment. Borrowers have more student loan payment plan\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=35127\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-13T14:37:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-13T14:37:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1689259065_0x0.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"799\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=35127#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=35127\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Your Student Loan Payment Plan Could Get Eliminated \u2014 Here\u2019s Why\",\"datePublished\":\"2023-07-13T14:37:44+00:00\",\"dateModified\":\"2023-07-13T14:37:46+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=35127\"},\"wordCount\":1043,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=35127#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=35127\",\"url\":\"https:\/\/ifintechworld.com\/?p=35127\",\"name\":\"Your Student Loan Payment Plan Could Get Eliminated \u2014 Here\u2019s Why | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-07-13T14:37:44+00:00\",\"dateModified\":\"2023-07-13T14:37:46+00:00\",\"description\":\"The student loan pause is coming to an end, and millions of Americans are barreling toward repayment. Borrowers have more student loan payment plan\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=35127#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=35127\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=35127#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Your Student Loan Payment Plan Could Get Eliminated \u2014 Here\u2019s Why\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Your Student Loan Payment Plan Could Get Eliminated \u2014 Here\u2019s Why | iFintechWorld","description":"The student loan pause is coming to an end, and millions of Americans are barreling toward repayment. Borrowers have more student loan payment plan","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=35127","og_locale":"en_US","og_type":"article","og_title":"Your Student Loan Payment Plan Could Get Eliminated \u2014 Here\u2019s Why | iFintechWorld","og_description":"The student loan pause is coming to an end, and millions of Americans are barreling toward repayment. Borrowers have more student loan payment plan","og_url":"https:\/\/ifintechworld.com\/?p=35127","og_site_name":"iFintechWorld","article_published_time":"2023-07-13T14:37:44+00:00","article_modified_time":"2023-07-13T14:37:46+00:00","og_image":[{"width":1200,"height":799,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1689259065_0x0.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=35127#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=35127"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Your Student Loan Payment Plan Could Get Eliminated \u2014 Here\u2019s Why","datePublished":"2023-07-13T14:37:44+00:00","dateModified":"2023-07-13T14:37:46+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=35127"},"wordCount":1043,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=35127#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=35127","url":"https:\/\/ifintechworld.com\/?p=35127","name":"Your Student Loan Payment Plan Could Get Eliminated \u2014 Here\u2019s Why | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-07-13T14:37:44+00:00","dateModified":"2023-07-13T14:37:46+00:00","description":"The student loan pause is coming to an end, and millions of Americans are barreling toward repayment. Borrowers have more student loan payment plan","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=35127#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=35127"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=35127#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Your Student Loan Payment Plan Could Get Eliminated \u2014 Here\u2019s Why"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/35127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35127"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/35127\/revisions"}],"predecessor-version":[{"id":35129,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/35127\/revisions\/35129"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/35128"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}