NORFOLK, Va. — More than four million student loan borrowers have signed up for a new U.S. Department of Education repayment plan to get some debt relief. That includes 104,000 in Virginia alone.
The Biden administration unveiled the SAVE plan in June. SAVE, which stands for "Saving on A Valuable Education," is an income-driven plan that means borrowers making less than $15 an hour won't have to make payments on their loans. That debt may eventually be forgiven after a certain period of time.
"If you make less than about $15 an hour or more if you have a family to support, we won't ask you to make any payments at all and that's because we think that student loans shouldn't come ahead of necessities like rent or food. And above that level, we'll ask you to make an affordable payment, a small share of your income," US Under Secretary of Education James Kvaal said.
Borrowers making above $15 an hour would save more than a thousand dollars a year. As long as borrowers keep making payments, their balance won't grow because of unpaid interest.
REPAYE borrowers are automatically enrolled in the SAVE plan.
A typical student loan for a four-year undergraduate degree is $30,000, according to Kvaal.
Borrowers wishing to apply for the SAVE program can click here.