Federal student loan borrowers have less than a week to prepare. Resuming payments Following the suspension of payments that took effect in March 2020, many people are expected to struggle to pay their bills after spending three and a half years without thinking about it.But on the other hand Helpful programs are availablemany borrowers don’t even know it exists.
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One of those programs is President Joe Biden’s Savings for Valuable Education (SAVE) student loan repayment plan. The plan is designed to eliminate monthly payments for low-income borrowers, save other borrowers at least $1,000 a year in payments, and keep borrowers from borrowing money. Their balance increases with unpaid interest.
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Applications for the SAVE plan are currently open, but nearly half of college graduates don’t know about it, according to a recent Study.com survey of 1,000 graduates. Almost half (48%) of those aware of the scheme are unsure whether it will help them pay their loan.Seven out of 10 respondents said they weren’t even applying to run for Biden. Student loan forgiveness plan later struck down by the U.S. Supreme Court,
According to Study.com, college graduates carry an average of $30,556 in student loan debt, and that debt is distributed about evenly across different age groups.
baby boomer: $32,000
Generation X: $27,000
millennial generation: $31,000
generation z: $34,000
In addition to not being aware of SAVE plans, there are two more oversights that can harm student loan borrowers.
A separate study by U.S. News & World Report found that fewer than one-third (30%) of student loan borrowers know when payments will resume.
67% have heard of the Biden administration’s 12-month repayment “on-ramp” program, but only 31% know what it is.
When it comes to preparing to repay student loans, Study.com’s research found that 37% of college graduates plan to adjust their budgets. About 3 in 10 (29%) are looking for new employment, 18% are researching repayment plans, 10% are setting up automatic payment schedules, and 9% are considering loan consolidation or refinancing options. We are considering.
Depending on the type of degree, on average, young graduates can expect to pay off their student loan debt at around age 40. For example, those who earn an associate’s degree are expected to pay off their student loans by age 42. The breakdown of other degrees is as follows:
The sample size of PhD holders was too small to draw conclusions about age.
This article was first published GOBankingRates.com: Half of college graduates don’t know about Biden’s new student loan repayment plan — two more oversights are hurting them