Written By: Anushka
Student Loan Forgiveness aims to reduce the repayment burden for eligible borrowers.
Borrowers in the SAVE program will have their monthly payments recalculated starting this month or August.
Payments are based on family size and income. Individuals earning under $32,800 or families of four earning under $67,500 qualify.
Starting July 2024, undergraduate loan payments drop from 10% to 5% of income. Loans of $12,000 or less will be forgiven after 10 years.
Direct Loan Consolidation combines multiple federal loans into one, lowering monthly payments and providing access to forgiveness programs.
Consolidated loans have fixed interest rates. Extended repayment terms result in lower monthly payments.
Approximately 30 million US citizens are eligible. Criteria include repayment history, economic hardship, and attendance at low-value institutions.