Biden administration launches new income-driven student loan repayment plan to provide relief for borrowers

The Biden administration launched a new income-driven repayment plan called the Saving on a Valuable Education (SAVE) plan.
The SAVE plan aims to reduce monthly payments and provide relief for over 20 million federal student loan borrowers.
Borrowers can now apply online for the SAVE plan, which bases payments on income and family size.
The plan will cut monthly undergraduate loan payments in half to 5% of discretionary income starting in 2024.
Some lower-income borrowers could qualify for $0 monthly payments under the SAVE plan.