Student Loan Repayment Plans Changes
If you’re a student loan borrower enrolled in SAVE, you have approximately one week left to switch repayment plans before interest accrual begins on your loans. Despite the imminent interest payments, it’s not mandatory to switch plans immediately.
Earlier this month, the Department of Education disclosed that interest would recommence on August 1 for nearly 8 million borrowers under the Saving on a Valuable Education plan. Monthly payments, however, remain in a general forbearance. You have a limited time to opt for another income-driven repayment plan or continue on SAVE until the forbearance concludes.
PSLF Borrowers and Repayment Plans
If you’re pursuing Public Service Loan Forgiveness (PSLF) while on SAVE, you can either remain in forbearance or switch to another repayment plan. Borrowers aiming for PSLF have options to make their payments count towards forgiveness by either continuing in forbearance or switching to a qualifying plan.