Monthly student loan repayments could spike in 2025
Some student loan borrowers could face steep increases in their monthly repayments in 2025.
Experts cited in a news report from Forbes have detailed that many initiatives of the Biden administration aimed at providing student debt relief have been rejected or blocked by courts. For instance, the SAVE plan has been met with legal challenges that could repeal the program. Additionally, because of pauses in payment requirements caused by the COVID-19 pandemic forbearance period, some borrowers may be updating their income with their loan providers for the first time in several years. The combined events could significantly raise monthly payments on their income-driven repayment plans.
Borrowers affected by the repealing of the SAVE plan would be forced to select an income-driven repayment plan with a less favorable repayment formula. These plans are dependent on factors such as borrowers’ income, graduate school loan status, repayment plan eligibility and whether they initiated their loans.
The experts advised student loan borrowers to speak with qualified tax advisors to determine strategies to reduce their monthly repayments.
Read more: Forbes
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