I am referring to the student loan repayments that seem like they have been deferred so many times I can’t count anymore. Eventually, you have to pay the piper. Here is some new information that may be helpful. I say may be – because we do not know if this will change again.

The Biden administration launched a beta application for its new income-driven repayment plan called Saving on a Valuable Education, or SAVE, plan. This plan started at the beginning of this month.

The plan may cut many borrowers’ previous monthly payments in half and leave some people with no monthly bill. Currently, SAVE increases the income exemption from 150% to 225% of the poverty line. It also eliminates unpaid monthly interest charges if you make your monthly payment on the principal, and it ends the need for your spouse to co-sign your application. Additional benefits start in July 2024.

August 31
If you don’t plan to make a payment in September, your servicer may apply an administrative forbearance on your loan, so no payment is due. If you want to opt out of this forbearance and pay in September, you must notify your servicer by this date.

September 1
Interest begins to accrue again on your loan. If you choose not to pay in September, you will be charged interest for this month.

October 1
Your first payment is due.

I suggest you take the time to review your student loans and set up your payments.

disclosures:http://www.hechteffect.net/?page_id=31