How Much Could Student Loan Payments Skyrocket for SAVE Borrowers? We Did the Math

Getty Images/CNET About 8 million federal student loan borrowers had hopes of smaller monthly payments and lower lifetime costs when the Biden administration rolled out the Saving on a Valuable Education (SAVE) repayment plan in 2023. But with SAVE officially shot down, you may be worried about how your monthly payments could change. Under income-driven repayment (IDR) plans, many borrowers who fell below certain income levels have had their payments lowered to $0 per month since March 2020. The new formula for monthly payments under SAVE would have extended that reality to millions more. With SAVE's demise, borrowers already in SAVE stand to see increases in their monthly payments. "The payment is likely going to go up for borrowers enrolled in SAVE," confirmed Elaine Rubin, a student loan policy expert for Edvisors and CNET Money expert review board member. Experts don't expect the payment pause to lift any sooner than December of this year, and some predict borrowers won't be re ... Read full article.