What to know about Biden’s student loan income-driven repayment plan

President Biden, shown here with Education Secretary Miguel Cardona. (Demetrius Freeman/The Washington Post)
5 min

Millions of Americans are paying down their student loans for the first time in years but with more repayment options than before.

Chief among them is President Biden’s new income-driven repayment plan — Saving on a Valuable Education plan, commonly known as SAVE — which ties monthly payments to earnings and family size. The White House estimates the plan could save the typical borrower $1,000 a year on payments because it reduces the amount of income used to calculate monthly bills. And some people enrolled in the plan will have their balances forgiven starting in February.

So how does it work? Here’s some information that could help you decide whether SAVE is right for you.

Student loans

The impact of student loan repayments: A technical loophole is helping some parents lower their student loan payments. The ending of the student loan payment pause has left some borrowers anxious and confused.

What are my student loan repayment options? Personal finance columnist Michelle Singletary shares what to focus on as student loan payments resume and why she says President Biden’s new SAVE student loan income-driven plan is a game changer.

What’s next for student loan debt relief? Biden is forging ahead on a new path to narrower student loan relief after the Supreme Court rejected his earlier loan forgiveness plan. Meanwhile, conservative groups sued to block Biden’s effort to provide $39 billion in forgiveness to longtime borrowers.