Biden's SAVE Plan to Significantly Reduce Student Loan Payments Starting July

Millions of borrowers will see lower monthly bills, though legal challenges could impact the program's future.

The SAVE plan reduces the percentage of discretionary income required for loan payments from 10% to 5% for undergraduates.
Borrowers with both undergraduate and graduate loans will have payments calculated using a weighted average.
The plan also includes provisions for faster loan forgiveness for those with smaller debts.
Legal challenges from Republican-led states may block the program's full implementation.
Borrowers already enrolled in the SAVE plan will see changes automatically reflected in their July bills.