"Student loan payments will start up again for millions of Americans in just a few short months. Interest will start accruing as of September first with payments expected to resume a month later," WRTV reports.

..."'The SAVE plan is expected to provide most borrowers with the lowest monthly payment when compared to some of the other plans that they would have available under that income driven umbrella,' Rachel Rotunda the Director of Government relations with the National Association of Student Financial Aid Administrators said. 'Changes that the administration has made to this plan will provide some more generous benefits to borrowers and in many cases, it will decrease the amount that they are paying in those monthly payments.'

Along with the potential for monthly savings, it will also control interest rates for people paying their loans back.

'For borrowers that are enrolled in this new plan any interest that is not covered by their monthly payment amount will be forgiven,' Rotunda said.

The Biden administration is also giving people who may struggle to pay their loans a year to get on their feet. They are doing so by getting rid of the most severe punishments for people not paying.

'For a borrower who does miss a payment under this sort of 12-month period they will not be reported to credit bureaus, they will not be placed in default or referred to debt collection agencies,' Rotunda said. 'So we are going to have this long on ramp. '"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 8/8/2023