Hello!

I'm reaching out to make sure that everyone in my district who has federal student loan debt is fully prepared to resume repayment. While I am working hard in Congress to ensure that every student can have access to a degree debt-free, regrettably the Supreme Court struck down President Biden’s student loan forgiveness plan, and loan repayment is resuming soon.

Interest on all federal student loans began accruing on September 1st and first payments will be due in October. All borrowers should contact their loan servicers to confirm their exact first payment due date.

Below you will find various resources to help you navigate this process. I know that it can be complicated, but my office is here to help. Please reach out if you encounter any issues.

Best,
Rep. Judy Chu

Below is some information on how borrowers can prepare as they begin transitioning back into repayment on federal student loans.

You can also click HERE for a more in-depth look at what to expect.

!NEW! REPAYMENT PLAN THAT OFFERS LOWER MONTHLY LOAN PAYMENTS

The Biden Administration has recently launched the most affordable repayment plan ever, the new SAVE (Savings on a Valuable Education) Plan. The SAVE Plan can significantly decrease your monthly payment amount compared to all other income-driven repayment (IDR) plans. Like other IDR plans, the SAVE Plan calculates a borrower’s monthly payment amount based on their income and family size.

SAVE Plan Benefits

Borrowers will only owe payments on income over 225% of the federal poverty guidelines.
- This means single borrowers earning $32,800 or less, and families of four earning $67,500 or less, will not owe any loan payments.
- Borrowers earning more than these amounts will save at least $1,000 per year compared to the current income-driven repayment plans.
Borrowers who make their monthly payments, even if that payment is $0, won’t see their loan balance grow due to unpaid interest.
Lastly, The SAVE Plan excludes spousal income for borrowers who are married and file separately. There is no longer need for a spouse to cosign the borrowers’ IDR application.

And by July 2024, additional benefits of the plan will go into effect, including:
Payments from undergraduate loans will be cut in half, from 10% to 5% of borrowers’ incomes above 225% of the poverty guidelines.
Borrowers with original principal balances of $12,000 or less will receive forgiveness of any remaining balance after making 10 years of payments.

How to Apply for the SAVE Plan

The SAVE Plan is replacing the existing REPAYE (Revised Pay As You Earn) Plan. Borrowers already on the REPAYE Plan will automatically be transferred over to the new SAVE Plan and do not need to reapply or request to change their plan. To check if you are already on the REPAYE Plan, log in to StudentAid.gov, go to your My Aid page, scroll down, and view your loans. Each loan will list a repayment plan. If you see that you are enrolled in the REPAYE Plan, you do not need to take any action.

If you are not already enrolled in the REPAYE Plan, you need to apply to get the benefits of the SAVE Plan. Click this link to apply for the SAVE Plan.

FOR MORE INFORMATION REGARDING THE SAVE PLAN, CLICK HERE

To ensure that you pick the right plan this helpful guide will steer you in the right path:

You can also click HERE for more information!

HERE ARE SOME OTHER HELPFUL LINKS FOR ALL DIFFERENT TYPES OF LOAN SITUATIONS:

Repaying Student Loans for the First Time
Click HERE if a borrower will be making payments for the first time since the COVID-19 pandemic-related pause.

Loan Forgiveness
Click HERE to learn more about the various loan forgiveness programs that are available for borrowers who meet certain criteria and circumstances.

Fresh Start
Click HERE to learn about a new initiative that aims to assist delinquent and defaulted borrowers enter back into repayment in good standing.

Public Service Loan Forgiveness (PSLF)
Click HERE for more information on borrowers working in public service who are employed by qualifying employers and meet the criteria to receive forgiveness.

Income-Driven Repayment (IDR) Plans
Click HERE to learn more about the 4 available IDR plans that determine your monthly student loan payment based on your income and family size.

Student Loan Deferment and Forbearance
Click HERE to see if you qualify for deferment or forbearance options that allows borrowers in short-term financial distress to temporarily stop making payments.

✧ TIPS AND TRICKS ✧

Here are some things to keep in mind while preparing for your student loans:

☞ OTHER HELPFUL RESOURCES ☜

Budgeting Tips: https://studentaid.gov/resources/prepare-for-college/students/budgeting/budgeting-tips

Loan Simulator: https://studentaid.gov/loan-simulator/

Frequently Asked Questions: https://studentaid.gov/manage-loans/forgiveness-cancellation/debt-relief-info

Who’s My Student Loan Servicer?:
https://studentaid.gov/manage-loans/repayment/servicers

Avoiding Student Loan Forgiveness Scams:
https://studentaid.gov/articles/avoid-student-loan-forgiveness-scams/

Thank you for reading,

Rep. Judy Chu

Member of Congress