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Some student loan borrowers will have to change to another repayment plan next month

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Some student loan borrowers will have to change to another repayment plan next month
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The Department of Education will start informing student-loan borrowers who are enrolled in the SAVE plan about their upcoming deadline to change to a new plan.

by CHARLOTTE HAZARD | The National News DeskWASHINGTON, DC - JULY 27: Activists attend a rally outside of the White House to call on U.S. President Joe Biden to cancel student debt on July 27, 2022 in Washington, DC.

Student loan borrowers are awaiting a decision from President Biden on student loan payments. , borrowers have 90 days to pick another repayment plan or they will be placed in the standard repayment plan - which is the most expensive.

"Your monthly payment amount will most likely go up if you are enrolled in either of these plans," the SAVE borrowers email reads. The tiered standard plan becomes available after July 1, It mandates that borrowers repay their loans in full over a period of time, which is based off their principal balance. The Repayment Assistance plan examines the borrower’s monthly payment based on one’s gross adjustive income, which is the more expensive plan.

The Trump administration has been battling lawsuits from different states and coalitions over student loans. Last month, Washington Attorney General Nick Brown and a coalition of 23 states and two governors sued the U.S. Department of Education, alleging that a new federal rule unlawfully restricts access to student loans for graduate students pursuing degrees in fields like healthcare.

“Our state needs nurses and other healthcare workers, but this unlawful rule will make it much more difficult for Washingtonians to pursue professional degrees,”. “At a time of high healthcare costs, we must build a robust network of primary care providers, but this change will only exacerbate shortages in our state. ”UPMC to lay off around 200 employees UPMC is set to lay off around 200 employees across its system, a company spokesperson confirmed to CBS 21.

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