Millions with student loan debt could soon pay much less

(CNN, KYMA/KECY) - Millions of borrowers will see their monthly student loan payments reduced starting in July.

It's thanks to one of the Biden Administration's biggest changes to the federal student loan system to date.

The Biden Administration's new repayment plan, known as 'Saving on a Valuable Education', or 'SAVE' for short, will be fully phased in by this summer.

For most borrowers, the plan offers a lower monthly payment than other federal student loan repayment plans.

It also cancels out student debt for some borrowers after they make as few as ten years of payments.

In July, monthly payments on loans borrowed for undergraduate school will be reduced from ten percent to five percent of discretionary income.

'SAVE' also changes the way discretionary income is calculated, shielding a bigger portion of a borrower's income.