With New SAVE Repayment Plan For Student Loans, College Costs Barely Matter

When the Biden administration launched its new SAVE income-driven repayment plan this year, the news seemed really promising for almost everyone repaying federal student loans. This new plan aimed to cut the average student loan payment for undergraduate loans in half, with a considerably higher number of Americans qualifying for $0 monthly payments based on their income and family size. And the current statistics show over half of borrowers who have enrolled in SAVE are paying $0 monthly.

What’s more, the SAVE plan would help borrowers who don’t qualify for $0 monthly payments save at least $1,000 per year compared to other income-driven plans.