Understanding the SAVE Plan

What is the primary goal of the SAVE Plan introduced by the Biden Administration?

• To provide scholarships for all students

• To reduce monthly student loan payments

• To increase student loan interest rates

• To eliminate student loans entirely

How does the SAVE Plan determine the monthly payment amount for borrowers?

• Based on the total amount of the loan

• Based on the borrower's credit score

• Based on the borrower's age

• Based on the borrower's income and family size

What happens if the Department of Education is delayed in recalculating a borrower's new payment amount under the SAVE Plan?

• The borrower must pay a penalty fee

• The borrower is automatically enrolled in a different plan

• The borrower is put into forbearance with no interest accruing

• The borrower must pay the old higher amount

Under the SAVE Plan, how soon can borrowers with $2,000 or less in debt see their loans forgiven?

• After 20 years of payments

• After 15 years of payments

• After 10 years of payments

• After 5 years of payments

What legal challenges are being faced by the SAVE Plan?

• It is being challenged for increasing taxes

• It is being challenged for not including private loans

• It is being challenged for overstepping administrative authority

• It is being challenged for reducing interest rates