SAVE program could offer some relief as federal student loan payments restart in October.
by Monica Jennings on Oct 12, 2023
Some borrowers are quite naturally experiencing dread and stress over student loan payments that are resuming this month.
A recent article in 401K Specialist magazine reported on the difficult trade-offs many borrowers will have to make, including delaying saving for retirement. The forbearance period allowed some to build savings or pay down other debts, but many diverted funds that would have been used to repay loans to basic living expenses.
If you have plan participants who are borrowers facing tough choices and adjustments, you may be providing valuable information by ensuring they are aware of the new income-driven repayment plan, SAVE (Saving on a Valuable Education). It’s possible the program could even mitigate the need to reduce 401(k) plan contributions for some.
An article published in the Wall Street Journal reported that up to 20 million borrowers could benefit from the plan.
Those interested in applying or learning more about the SAVE repayment plan can visit https://studentaid.gov/announcements-events/save-plan