Saving on monthly repayments after July 1

Experts offered tips federal student loan borrowers can use to save on their monthly payments as the July 1 loan reform deadline approaches.

Although the Repayment Assistance Plan is expected to increase repayments for many student loan borrowers who are enrolled beginning in July — particularly those who switched from more affordable options such as the Saving on a Valuable Education plan — the experts detailed that the payment percentage is determined by borrowers’ adjusted gross income levels and that taking steps to lower taxable income can reduce the monthly bill, according to a news article from CNBC.

For instance, borrowers can make greater pretax contributions from their paychecks to 401(k) or traditional retirement accounts as well as health savings accounts or flexible spending accounts. Further, dental practice owners can claim legitimate business expenses and deductions on their Schedule C — including business costs, health insurance deductions and retirement contributions. The experts also noted that borrowers with dependents can claim a $50 per month reduction on their monthly repayments per dependent.

While some income-driven repayment plans will still be available to those who took out student loans prior to July 1, after the deadline, the only income-driven option for new borrowers will be the Repayment Assistance Plan.

Read more: CNBC

The article presented here is intended to inform you about the broader media perspective on dentistry, regardless of its alignment with the ADA's stance. It is important to note that publication of an article does not imply the ADA's endorsement, agreement, or promotion of its content.