GREENSBORO, N.C. — This weekend isn't just a new month, it's the beginning of student loan repayments. Interest began accruing in September and the student loan pause is officially over as of Oct. 1. Even if there is a shutdown, your payment is still due.
How much will your payment be? Maybe lower than you think. The SAVE plan changes your monthly bill depending on your income and your family status.
For example, a single-person family making $60,000 a year will pay $227 a month. But get this, if you're a parent now and you're a family of three and you make $50,000 your payment is now zero!
"If you're a single borrower and you make less than $15 an hour, you don't have to pay. That's huge," said Jill Schlesinger, CBS News Business Analyst.
The SAVE plan is easy to find. It's the top border on the StudentAid.gov website. You can't miss it. You'll put your info in and figure out how your payment can be lowered.
Here's another positive of the SAVE plan, it treats interest differently. For example, if a borrower qualifies for a low monthly payment of $30, but their interest is $50, they won't be charged that additional $20.
"One thing the Biden administration did announce was that there was something called an on-ramp which was a recognition that a lot of people who are starting repayments might mess up a little bit. Say you miss a payment, well, they're not going to report it to a credit agency, they're not going to put your loan into default. They're not even going to really consider you a bad payer," said Schlesinger.
Having some squish room is always good, but remember, the loan is still there. If you don't know when your payment is due, if you forgot who your lender is, the one source to go to is StudenAid.gov.