Higher earners may qualify for lower student loan payments
Lower monthly student loan repayments may be an option for some borrowers in the near future.
The U.S. Department of Education announced that it is working on implementing changes to the Income-Based Repayment plan and introducing the new Repayment Assistance Plan, according to a news article from CNBC.
With the changes, borrowers will no longer be expected to provide evidence of financial hardship to qualify for the Income-Based Repayment plan — meaning that those who earn higher incomes will be eligible for the plan. Meanwhile, the Saving on a Valuable Education, Income-Contingent Repayment and Pay as You Earn plans will be phased out over the next few years. Borrowers switching to the Income-Based Repayment plans will either see lower, higher or similar monthly payment obligations, depending on their previous plan.
The Repayment Assistance Plan will become available on July 1, 2026. This plan aims to forgive outstanding debt after 30 years of repayments.
Read more: CNBC
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