by BLACK ENTERPRISE Editors
Reports suggest that over seven million borrowers will be impacted by the phaseout of the income-driven repayment option.
Millions of federal student loan borrowers in the Saving on a Valuable Education (SAVE) repayment program could soon experience significant changes as the Biden-era plan nears termination due to legal challenges and shifts in federal policy, The Hill reports. The outlet suggests that over seven million borrowers will be impacted by the phaseout of the income-driven repayment option.
In announcing a proposed settlement in the lawsuit, the U.S. Department of Education stated it would move all SAVE borrowers into legal repayment plans, stop accepting new enrollments in SAVE, and deny pending applications if the court approves the agreement.
Advocates have warned that ending SAVE could lead to higher monthly payments for many borrowers and create uncertainty for those seeking loan forgiveness programs. Meanwhile, federal officials advise borrowers to review available repayment options and get ready for further guidance as the transition progresses.
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Source: Black Enterprise
