Here’s when and how to sign up the new federal student loan repayment plan
UPDATE: Here’s what’s on the new beta application
This story was originally published on July 25.
It’s been a few weeks since President Joe Biden announced his new student loan repayment plan. So when and how can you sign up?
We’re answering this question from one of our readers.
A quick recap: The new plan, which was introduced after the Supreme Court shot down the student debt forgiveness plan, cuts how much borrowers have to pay of their discretionary income and means your loan balance won’t grow as long as you keep up with payments.
When to sign up
We don’t have a specific date yet, but the application will be available this summer. The Office of Federal Student Aid says it will notify borrowers directly when the Saving on a Valuable Education, or SAVE, plan is open.
And if you’re already enrolled in or signed up for the Revised Pay As You Earn, or REPAYE, plan now, you’ll be automatically placed on the SAVE plan once it opens. If you apply for SAVE this summer, your application will be processed in time for your first payment due date.
Your other option is to contact your loan servicer directly.
Find your loan servicer
First, visit studentaid.gov. Select menu in the top right corner and log in. You’ll need to make sure your contact information (including your email, phone number and address) is up to date and then verify that information.
After that, you’ll be able to see your upcoming payments, servicer, due date and amount due. You can also see your total loan balance, broken down by principal and interest.
But, now that we know the servicer, we’re going to that website. You might have to register for an account if you haven’t done that. From there, you can manage your repayment options or set up your auto pay.
Your loan servicer may have changed during forbearance — so you could also sift back through your email for an update.
What to do next
Once you figure out which company is your loan servicer, the Federal Student Aid office recommends these steps:
Review or sign up for auto-pay.
Use the department’s loan simulator to find a repayment plan. This looks at your personal information, loan information and repayment goals (fastest payoff, lowest monthly payment, lowest total paid over time, monthly payment I choose, total paid by a certain date).
Consider applying for an income-driven repayment plan.
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This story was originally published July 26, 2023 at 5:00 AM with the headline "Here’s when and how to sign up the new federal student loan repayment plan."
