Student loan borrowers should keep an eye on their balances this summer, as big changes are coming. On July 1, millions of borrowers could see their monthly payments cut in half, but only if they’re enrolled in the correct plan.The SAVE plan is the administration’s revamped income-driven repayment, or IDR, plan. It was announced last summer and has already been a vehicle for the administration toThe SAVE plan exempts more of a borrower's income from the monthly payment than previous plans.
Not everyone agrees that the federal government should be forgiving that much debt. Republicans in Congress have been fighting to stop SAVE and, recently, some states have jumped in.There’s a lawsuit in Texas and one in Missouri hoping to overturn this program. The cases argue that student loan servicers are being denied interest on certain types of loans.