From Time:

1. Joe Biden’s new income-driven repayment plan allows 3.9 million federal student loan borrowers to qualify for $0-a-month loan payments, with 6.9 million total enrollees. On average, borrowers have seen their monthly bills reduced by $117, resulting in over $1,400 in annual savings from pre-SAVE levels.

2. The new plan, named Saving on a Valuable Education (SAVE), ties borrowers’ monthly bills to 10% of their disposable income, with $0 payments for high-balance borrowers. President Joe Biden unveiled this program last June after the U.S. Supreme Court blocked his initial forgiveness plan.

3. The SAVE program is more generous than past income-driven repayment plans, recognizing borrowers’ very low income levels, granting them forgiveness based on 10 to 25 years of qualifying payments.

4. Successfully making required payments on the SAVE plan puts borrowers on the path toward total loan forgiveness, including the waiver of any interest that would increase the loan balance. However, despite the relief, SAVE has had a rocky rollout with widespread errors by loan servicers and billing issues for borrowers.

5. Early student debt cancellation through the SAVE program is set to roll out as early as February. Borrowers who took out less than $12,000 in federal loans in repayment for at least 10 years will get their remaining student debt canceled, while others will need to wait until July for additional relief.

6. Further forgiveness benefits related to the SAVE program are set to roll out in July, including reduced discretionary income percentage for monthly loan bills, additional student loan cancellations, forbearance, and other automatic-enrollment benefits. This program seeks to provide significant relief and forgiveness for student loan borrowers.



Read more: Student Loan Payments Cut to $0 for Millions of Borrowers