The Biden administration is restructuring student loan repayment schemes to lower monthly payments and interest rates.

Tens of millions of Americans are eligible to join the SAVE income-driven repayment plan, which would save $1,000 a year for the average borrower and $2,000 a year for graduates of four-year U.S.

public colleges or universities. The plan aims to reduce monthly student loan payments from 10% to 5% of discretionary income, with about 1 million more low-income borrowers qualifying for no monthly payments.

The plan will be critical for low- and middle-income borrowers, community college students, and borrowers working in public service.