Student Loan Overhaul: New Repayment Plans Take Effect Amidst Controversy
Student Loan Overhaul: New Repayment Plans Take Effect Amidst Controversy Millions of federal student-loan borrowers are set to face significant changes to their repayment options following the passage of a major spending package. The legislation, championed by the current administration, eliminates existing income-driven repayment plans, including the former SAVE plan, and introduces two new, less generous alternatives. The first new option, the Repayment Assistance Plan, will cap payments at 1% to 10% of a borrower’s income, with a minimum monthly…