News from Congressman Bill Foster

Dear Friend,

I’m writing to inform you that the White House recently announced a new income-driven repayment (IDR) plan that could help lower monthly student loan payments for millions of Americans.

The new Saving on Valuable Education (SAVE) Plan replaces the Revised Pay As You Earn (REPAYE) Plan and provides multiple new benefits, including lower monthly payments.

Like all IDR plans, the SAVE Plan calculates monthly payments based on income and family size, rather than loan balance. After a set number of years, your remaining balance is forgiven.

This announcement is particularly important as student loan payments resume in October, with student loan interest resuming on September 1, 2023. Now is the best time to make sure those payments are affordable.

Some benefits of the new SAVE Plan include:

Lower monthly payments: You might qualify for a monthly payment as low as $0 if you are a single borrower earning $32,800 or less, or a family of four earning $67,500 or less. According to Federal Student Aid (FSA), if you’re making more than $32,800 a year, you’ll save at least $1,000 a year compared to other IDR plans.

Your loan balance won’t grow as you repay: If your monthly payment is lower than the interest accrued that month, you won’t be charged the difference. You’ll no longer see your total balance grow due to unpaid interest when you pay your monthly payment amount.

Your monthly payments can be automatically recalculated every year: For most borrowers enrolling in an IDR plan, you will be able to sign up to have your income information recertified automatically each year. You’ll still be notified when your payment amount is changing, but you won’t have to take any action.

Increased protection if you lose your job: On IDR plans, you can manually recertify and update your income information early to adjust your monthly payment amount. If you lose your job and don’t have taxable income, you could qualify for a $0 monthly payment.

If you were on the REPAYE Plan, you will automatically receive the benefits of the SAVE Plan without needing to take action.

If you were not enrolled in REPAYE or any other IDR plan and want to take advantage of the benefits of an IDR plan, including the SAVE Plan, don’t wait to apply. The application takes 10 minutes or less.

My office is here to work for you. As always, don’t hesitate to reach out to any of the numbers listed below.

Sincerely,

Bill Foster
Member of Congress

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