Student loan repayments resume next month, leaving borrowers little time to rethink their budgets and choose a payment plan — a decision that could have a lasting impact on millions of workers’ financial futures.
Given the Supreme Court’s decision to rule against student loan forgiveness this summer, over 43 million Americans are expected to restart payments on their full loan balances as well as interest in October. But before borrowers continue with their pre-COVID repayment plan, they need to take a long look at President Biden’s SAVE plan, a new income-driven repayment plan that has the potential to cut monthly payments down to $0.
