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New income-driven student loan repayment plan launched by the Biden Administration

Posted at 10:42 PM, Jul 31, 2023
and last updated 2023-07-31 23:42:34-04

CORPUS CHRISTI, Texas — The Biden Administration announced a new payment program called SAVE — it allows students a monthly balance based on income.

Doctor Andy Beniot, TAMUCC vice president of enrollment management, said that the Biden Administration has outlined some new things that are going to be advocating to be able to help some students.

Currently, borrowers can pay a minimum monthly payment, but now borrowers have a new option.

If a borrower chooses to participate in the new save payment program, they can pay based on a percentage of their monthly income.

Beniot added that not all students will choose to use this plan. The options will be based on how quickly the borrower would like to pay off their loan.

“They will give you several options and then recommend the best option for you. Many lenders will give you three or four different options, and sometimes going based on income isn't always the best option,” Beniot said.

And for those students who are graduating or are already graduating students, these are the steps to follow when you decide to start your refund process:

  • Be sure to complete your exit counseling at your previous institution
  • Go to FASFA.ED.GOV for all the refund information that specifically fits your situation
  • Choose the payment plan that best suits you.

Jacob Hernandez, a graduating student, said he makes sure he's current on top of his loans before it's time to repay them by saving his loan reinbursments each semester.
"I have been throwing directly back to the student loan repayment to try to get ahead of it because I know the interest rates and everything like that while they are low it’s very daunting to have to try to take all of it at once as soon as you graduate," he said.

Beniot recommends that you make sure that the emails you receive from lenders come from a verified email address or end in .gov to avoid scams.

“So don't be afraid to ask questions. Contact your previous college financial aid advisors or your lenders, remember not to be afraid to ask questions, especially about your loans,” Beniot said.