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What to know about student loan repayment plans and collections
The Education Department will transition 7.5 million SAVE plan borrowers to other repayment options and pause collections for those in default while new rules are finalized.
- The U.S. Department of Education will stop enrolling new SAVE applicants, deny pending applications, and move current SAVE borrowers into other repayment plans, following program changes and legal challenges.
- Legal challenges to the SAVE plan left many borrowers in limbo, ending last year with a settlement that prompted the department's actions.
- About seven and a half million borrowers are affected, as involuntary collections were paused last month and will remain on hold during the transition of federal student loans.
- Processing delays could lengthen uncertainty for borrowers, as experts advise borrowers to proactively enroll in other plans since the loan consolidation process may take around 60 days.
- Several changes will take effect this summer, including new loan limits applying to loans taken after July 1 for borrowers starting new programs later this year.
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Total News Sources15
Leaning Left5Leaning Right1Center6Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 42%
C 50%
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