U.S. Department of Education launches new website for student loan borrowers
(NBC, KYMA/KECY) - The federal government launched a new website Monday to help people save on their student loans.
Under a new plan devised by President Biden's administration, some borrowers could see their monthly payments drop to nothing, while others will save money over the course of the loan's lifetime.
The Education Department launched a new beta website this week, where student loan borrowers can log-in and see all of their options for paying off their student loans when payments resume in October.
One of those options is the new save plan.
"For most borrowers they will see a lower overall payment plan than what they saw before," said Kim Miller of the Lutheran Social Service.
Looking at borrowers' income and family size
Miller says the save plan looks at the borrowers' income and family size to determine how low their required monthly payment should be.
For many on the lower end, that number will be $0.00 a month. Miller says that means borrowers on the plan can sign up, not pay anything, and still avoid racking up interest on their student loans.
"Offering a lower repayment plan option is not for everybody, but it can be helpful especially right now for people who are just looking for a way to ease back into their repayments," Miller explained.
Miller says the save plan also has a forgiveness component to it.
Remaining balance forgiven
After several years of making payments, borrowers will have their remaining balance forgiven, even if those payments are $0.00 a month.
Miller says the application process is also more convenient than ever.
Borrowers can apply in less than 10 minutes, and they don't have to re-apply every year with new information because the website can now access your tax returns to see which plans and benefits you qualify for.
"We are just encouraging people to take a look. A lot of people have been avoiding looking at their student loans, for good reasons, it can be overwhelming, but there are a lot of different options now," Miller shared.
