Student Loan Interest Payments Resume in September + New SAVE Plan
On September 20 at 8:00pm, SEIU Public Services Division will host a webinar on Student Debt Relief with the U.S. Department of Education. The webinar will help all members of the union understand, navigate, and manage their student debt by assisting with relief or forgiveness options.
Congress recently passed a law that prevented further extensions of the payment pause for student loan interest. After a three-year pause, student loan interest resumed on September 1, 2023. Borrowers will have to restart payments in October.
To help substantially reduce further monthly payments for lower- and middle-income borrowers, the Biden-Harris Administration announced the Saving on a Valuable Education (SAVE) plan.
President Biden said that student debt should not be a burden that weighs people down for decades to come, and that his administration will fix the broken student loan system and make college more affordable.
The SAVE plan will:
- Cut payments on undergraduate loans in half
- Bring many borrowers’ loan payments to $0 per month
- Ensure that borrowers never see their balance grow as long as they keep up with their required payments
- Provide early forgiveness for low-balance borrowers
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