Student Loan Borrowers May Have 12 Months to Exit SAVE Plan, Servicer Data Shows
By
Adam S. Minsky
Summary
Federal student loan borrowers enrolled in the SAVE plan may have up to 12 months to switch to other repayment plans, according to information quietly posted by a student loan servicer. This contradicts urgent notices from the Education Department that suggested borrowers needed to act quickly. The SAVE plan, a Biden-era income-driven repayment program designed to be the most affordable option, is being wound down after over two years of legal challenges. The article clarifies the timeline and options available to millions of affected borrowers.
Source
bskyStudent Loan Borrowers May Have 12 Months to Exit SAVE Plan, Servicer Data Showsforbes.comKey quotes
· 3 pulledSome federal student loan borrowers could have a full 12 months to switch their student loans out of the SAVE plan, according to new information posted by one of the Education Department's contracted student loan servicers.
The revelation suggests that some of the department's recent, urgent notices to borrowers instructing them to change repayment plans quickly may have been overblown.
The SAVE plan, a Biden-era income-driven program that was designed to be the most affordable repayment plan ever, is winding down after more than two years of legal battles.
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