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Today’s Lead Story
Monday, June 29

Debt

Federal Student Loan Overhaul Takes Effect July 1 — What Borrowers Must Do Now

via NPR

The Biden-era SAVE repayment plan ends July 1 and is replaced by the new Repayment Assistance Plan, which caps monthly payments at 1%–10% of adjusted gross income with forgiveness after 30 years. The roughly 7 million borrowers still enrolled in SAVE who take no action will be automatically moved into a less flexible repayment option.

Why it matters

If you hold federal student loans, contacting your servicer this week to choose a repayment plan can prevent steeper automatic payments from starting this fall.

For educational purposes only. Not financial, investment, tax, or legal advice. Always do your own research or speak with a qualified professional.

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