:money_with_wings:The SAVE plan reduces payments on undergraduate loans to 5% of discretionary income.
:calendar:After making payments for 20 years, any remaining balance is forgiven.
:warning:Forgiven student loan balances are taxable as income.
:moneybag:The program cancels unpaid interest for borrowers with low incomes.
:calendar:The plan will take full effect next summer and will require some borrowers to make payments for 10 years before forgiveness.
Who is eligible for the SAVE plan?
—Individuals with federal undergraduate or graduate loans qualify for the program.
Can parents with Parent PLUS Loans qualify for the program?
—No, parents with Parent PLUS Loans are excluded from the program.
Is the SAVE plan a good option for borrowers?
—The SAVE plan can provide relief for borrowers struggling with loan payments, but it's important to consider the long-term implications and potential tax consequences.
Will interest be canceled for borrowers with low incomes?
—Yes, the program cancels unpaid interest for borrowers with low incomes.
When will the SAVE plan take full effect?
—The program will take full effect next summer.
00:00Biden has introduced a new student loan repayment plan called SAVE (Saving on a Valuable Education).
05:00The SAVE plan reduces payments on undergraduate loans to 5% of discretionary income.
10:00After making payments for 20 years, any remaining balance is forgiven.
15:00Forgiven student loan balances are taxable as income.
20:00The program cancels unpaid interest for borrowers with low incomes.
