Student Loan Repayment Shifts to a 10% Income Capy

Monthly student loan payments for some borrowers will double. The federal government is terminating the SAVE plan in July, which capped payments at 5% of borrower income. The next best available option caps payments at 10% of borrower income. Borrowers who do not proactively switch plans will be placed in the standard repayment plan, which has the most expensive monthly payments. New loans after July 1 will be limited to the Repayment Assistance Plan. This program requires 30 years of repayment before borrowers can qualify for student loan forgiveness, as opposed to the 20 or 25 years that are standard now.