The Biden administration has changed an income-contingent loan program in ways that will make it more popular and also more expensive.
The Saving on a Valuable Education (SAVE) Plan replaces the existing Revised Pay As You Earn (REPAYE) Plan. SAVE increases the income exemption from 150 percent to 225 percent of the poverty line.
That means borrowers will not owe loan payments if they are a single borrower earning $32,800 or less or a family of four earning $67,500 or less. Borrowers earning more than these amounts will save at least $1,000 per year, compared to the current income-driven repayment plans.