Independent Student Newspaper for the University of Texas at San Antonio

The Paisano

Independent Student Newspaper for the University of Texas at San Antonio

The Paisano

Independent Student Newspaper for the University of Texas at San Antonio

The Paisano

Federal loan repayment plan could save students billions

Jessica McLaren

After a highly publicized Supreme Court ruling struck down the original student loan forgiveness program instituted by the Biden Administration, a new income repayment system is set to replace the current forms of income-driven repayment plans (IDR) for federal loan holders. The new plan could potentially save borrowers thousands in payments.

According to the White House announcement for the program, the Saving on a Valuable Education (SAVE) plan is a new form of IDR that “calculates payments based on a borrower’s income and family size — not their loan balance — and forgives remaining balances after a certain number of years.”

To qualify for the program, borrowers must make less than $32,800 in individual income as of August 2023. The income limits are dependent on your status and your household or family size. 

If you recently applied or are already on the existing Revised Pay As You Earn plan, then you will be automatically enrolled in the new SAVE plan. Most federal loan borrowers qualify for this new program. 

Borrowers now have the option to avoid loan payments and receive forgiveness, in some cases, ahead of schedule. Furthermore, the government has introduced a new policy under the SAVE plan where borrowers are not charged monthly interest on outstanding balances, resulting in significant cost savings for borrowers.

The Department of Education has estimated that the new SAVE plan will see Hispanic borrowers have their total lifetime payments per dollar borrowed cut in half, while typical four-year college graduates are estimated to save over $2,000 a year. 

When applying for financial aid, don’t forget about UTSA’s One Stop Enrollment Center. One Stop can help you with applying for aid, understanding the types of aid available and receiving your offered funds. Not sure when your aid will be applied to your bill or what options you have? One Stop has got your back.

Students can visit for more information or to apply for the plan. 

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About the Contributors
Andrew Dotson
Andrew Dotson, Staff Writer
Andrew (He/Him) is a Freshman at UTSA majoring in Cybersecurity. His hobbies include coding, gaming, tinkering with Raspberry Pi and helping educate and teach others about technology
Jessica McLaren
Jessica McLaren, News Editor
Jessica McLaren is a senior digital communications student. She is from Austin, Texas, and she has been working with The Paisano for several years now — first as a staff writer and now as the News Editor. Though she has loved to write for virtually her entire life, Jess only recently discovered her passion for visual design through her studies at UTSA. She values open-mindedness and compassion and believes the media is a powerful tool that can be used to strengthen the forces of humanity if used mindfully. Once she graduates, Jess plans to use her expertise in writing, editing and design to help people better understand themselves and the world around them by creating compelling and engaging communication campaigns as a self-employed writer and designer. When she’s not writing an article or researching for one, you can usually find her reading a book about philosophy with a good cup of coffee.

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