Abrams went on to say, “If you’re struggling to make your payment, there are what’s called income-driven repayment programs that base your payment on your income versus the overall loan amount that can help people that are struggling to make their payment right now.”
In 2023, the Biden administration introduced a new income-driven plan called the SAVE plan that set certain lower-income borrowers up for $0 monthly payments with no interest accruing. However, that plan has since been tied up in the courts with millions of borrowers still waiting to find out what will happen.
Abrams explained, “You can still technically enroll in the SAVE program and then be included in that forbearance. I’d caution a bit, because that could take up to two months, and we don’t know where the status will be of the lawsuits in two months.” Calazans added that, as of now, enrolling in the SAVE program also halts progress in plans like public service student loan forgiveness, so for that reason, they recommend sticking to other income-driven plans.
