New Student Loan Forgiveness Guidelines: Repayment Changes

Written By: Anushka

Forgiveness Plan

Student Loan Forgiveness aims to reduce the repayment burden for eligible borrowers.

SAVE Program

Borrowers in the SAVE program will have their monthly payments recalculated starting this month or August.

Income-Driven Repayment

Payments are based on family size and income. Individuals earning under $32,800 or families of four earning under $67,500 qualify.

Repayment Reduction

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.

Loan Consolidation

Direct Loan Consolidation combines multiple federal loans into one, lowering monthly payments and providing access to forgiveness programs.

Fixed Rates

Consolidated loans have fixed interest rates. Extended repayment terms result in lower monthly payments.

Eligibility

Approximately 30 million US citizens are eligible. Criteria include repayment history, economic hardship, and attendance at low-value institutions.

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