--- title: You Can Sign up Now for Biden's New Student Loan Repayment Plan description: The Biden administration officially launched a new, more generous income-driven repayment plan for student loans. Here's how to sign up. authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Loans - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Insurance - Investing - Lifestyle - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Loans - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum updaters: - name: Kaitlin Mulhere role: Editor url: https://money.com/author/kaitlin-mulhere/ bio: Kaitlin Mulhere is an editor at Money.com, where she focuses on student debt. Her work guides readers from taking out their first student loan to navigating different repayment options. education: University of Florida at_money_since: 2015 articles: 217 covers: - Loans - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Mortgages - Personal Finance - Retirement - Shopping - Taxes social: - https://twitter.com/KMulhere - https://www.linkedin.com/in/kaitlin-mulhere-64503048/ published: '2023-08-22T17:24:01.000Z' modified: '2024-01-10T15:04:57.000Z' section: Loans tags: - Student Loans word_count: 661 canonical: https://money.com/save-student-loan-plan-signup/ type: Article source: structured-blocks --- > **Disclosure:** We may earn a fee if you click on the links below. Compensation does not determine ranking. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo-illustration of Joe Biden signing a book with three hands holding pens.](https://img.money.com/2023/07/News-Signup-Student-Loan-Repayment.jpg?crop=0px%2C79px%2C2880px%2C1620px&quality=85) The Biden administration has formally launched a new [student loan](https://money.com/how-do-student-loans-work/) repayment plan for federal borrowers — and officials are urging borrowers to sign up before payments resume in a few weeks. The initiative, called Saving on a Valuable Education (SAVE), is an income-driven repayment plan, meaning bills are tied to a person's income rather than the amount owed. The timing is purposeful: The rollout comes as federal student loan payments are [set to resume](https://money.com/when-do-student-loan-payments-resume/) this fall after a more than three-year pandemic pause. The SAVE plan is one of a handful of ways that the administration is working to overhaul the [student loan](https://money.com/student-loans/) system after President Joe Biden’s flagship debt cancellation initiative was [struck down](https://money.com/supreme-court-blocks-student-loan-forgiveness/) by the Supreme Court earlier this summer. Designed to replace the existing Revised Pay as You Earn (REPAYE) plan, SAVE is intended to protect more of a borrower’s income from [getting eaten up](https://money.com/student-loan-payments-squeeze-homebuyers/) by required monthly loan payments. It will also cover unpaid interest on a borrower’s account so that loan balances don’t grow as long as monthly payments are made on time. In a news release, U.S. Secretary of Education Miguel Cardona called the plan "the most affordable repayment plan ever created." After releasing a beta version last month, the department said Tuesday it has fully launched the updated income-driven application tool where borrowers can [submit applications](https://studentaid.gov/idr/) for the new plan. Only some aspects of the new SAVE program will be implemented when borrowers resume payments in October, according to the Education Department. One of the biggest changes has to do with the amount of a borrower’s income that is protected from [payments](https://money.com/student-loan-payments-restarting-monthly-bill-amount/). Under the old REPAYE plan, borrowers had to make monthly payments equal to 10% of their discretionary income, which is defined as any income in excess of 150% of the federal poverty guideline. Under SAVE, that threshold will increase to 225%. Borrowers who make roughly [$15 per hour](https://money.com/places-minimum-wage-15-hour-2022/) or less will qualify for $0 payments, and those who earn more could see their payments reduced by at least $1,000 per year compared to other IDR plans, according to the Education Department. The government will also begin writing off any unpaid interest on SAVE borrowers' accounts, so long as they are making regular payments. That change is designed to prevent loan balances from ballooning if a borrower's payments aren't enough to cover monthly interest charges. Seventy percent of borrowers who were enrolled in these plans before the payment pause would benefit from this provision, according to department estimates. What's more, some borrowers could see their [payments](https://money.com/how-to-pay-off-student-loans-fast/) reduced even further when more changes go into effect in July 2024. For one, payment requirements for undergraduate loans will be reduced from 10% of a borrower's discretionary income to 5%. Required payments for borrowers with both undergraduate and graduate loans will be calculated by a weighted average of between 5% and 10%. ## How to sign up for Biden's new student debt repayment plan Borrowers who are already enrolled in REPAYE will be automatically enrolled in the SAVE plan in the coming months. If you aren't enrolled in the REPAYE plan, you can visit the Education Department's website [here](https://studentaid.gov/idr/) to apply for the SAVE plan using your StudentAid.gov account. You'll need your federal student aid information and financial details. The Education Department says borrowers should expect to be able to complete the application in 10 minutes or less, adding that borrowers who apply this summer will have their applications processed in time for the first student loan payment due date in October. Keep in mind it may take a few weeks of processing for your account records to update with details of the new plan. In the meantime, check out the Education Department's announcement [here](https://studentaid.gov/announcements-events/save-plan). [Many Student Loan Payments Could Be Cut in Half Under Latest Biden Plan](https://money.com/biden-student-loans-income-driven-repayment-changes/) [How Student Loan Borrowers Can Prepare for Big Changes Coming in 2023](https://money.com/student-loan-changes-2023/) [When Will Student Loan Payments Start Again?](https://money.com/when-do-student-loan-payments-resume/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/save-student-loan-plan-signup/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Loans", "item": "https://money.com/loans/" }, { "@type": "ListItem", "position": 3, "name": "Student Loans", "item": "https://money.com/student-loans-category/" }, { "@type": "ListItem", "position": 4, "name": "You Can Sign up Now for Biden's New Student Loan Repayment Plan" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/save-student-loan-plan-signup/#webpage", "url": "https://money.com/save-student-loan-plan-signup/", "name": "You Can Sign up Now for Biden's New Student Loan Repayment Plan", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2023-08-22T17:24:01.000Z", "mainEntity": { "@id": "https://money.com/save-student-loan-plan-signup/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/save-student-loan-plan-signup/#breadcrumb" }, "dateModified": "2024-01-10T15:04:57.000Z" }, { "@type": "Article", "headline": "You Can Sign up Now for Biden's New Student Loan Repayment Plan", "articleSection": "Loans", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/07/News-Signup-Student-Loan-Repayment.jpg?crop=0px%2C79px%2C2880px%2C1620px&quality=85", "width": 1012, "height": 569, "caption": "News-Signup-Student-Loan-Repayment" } ], "author": [ { "@type": "Person", "name": "Sarah Hansen", "url": "https://money.com/author/sarah-hansen/", "@id": "https://money.com/author/sarah-hansen/#author", "description": "Sarah Hansen is a senior writer at Money covering all things personal finance. 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