Student loan borrowers exiting SAVE may face sharply higher payments if they don't take action soon

Borrowers leaving the SAVE repayment plan may face higher monthly payments unless they enroll in an alternative plan before their current arrangement expires. The SAVE plan, introduced in 2023, caps monthly payments at 5 percent of discretionary income for undergraduate borrowers. Borrowers who do not select a new repayment option will be automatically assigned to the Standard 10-year repayment plan, which typically involves higher monthly payments. The Department of Education has not specified a deadline for borrowers to make this transition.

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