New student loan repayment program announced by Biden administration

WASHINGTON, D.C. (CNN) – The Biden administration has officially launched its new student loan repayment program.

It’s called “SAVE” and aims to significantly lower payments and reduce overall loan costs for millions of people.

The White House said the income-driven repayment plan will calculate payments based on the borrower’s income and family size, not their loan balances. It will also forgive remaining balances after a certain number of years.

The administration is encouraging borrowers to apply for the plan as soon as possible. That way, the account changes will have time to take effect before the current years-long payment pause ends this October.

SAVE will be fully implemented in the summer of 2024.

It follows a Supreme Court strike-down of President Biden’s previous student loan forgiveness program in late June.

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