Overview

• Over 8 million borrowers enrolled in the SAVE plan will see reduced payments starting July 1.
• Monthly payments for undergraduate loans will drop from 10% to 5% of discretionary income.
• Loan servicers are recalculating payments, leading to a temporary administrative forbearance for July.
• Borrowers will receive credit toward loan forgiveness during this forbearance period.
• Legal challenges to the SAVE plan continue, with rulings expected soon.