Today’s Lead Story
Tuesday, June 9Debt
Federal Student Loan Repayment Plans Are Being Replaced — July 1 Is the Deadline
via U.S. Department of Education
Income-driven repayment plans including SAVE and PAYE are being replaced July 1 by a new Repayment Assistance Plan capping payments at 1–10% of adjusted gross income, with forgiveness after 30 years. Parent PLUS borrowers must consolidate before the deadline or lose income-based repayment eligibility permanently.
Why it matters
With the July 1 cutoff just weeks away, federal loan borrowers should verify which repayment plan they hold and whether they need to act now to preserve income-based options.
