"Lawmakers expressed that moving borrowers to a new plan over a short timeframe would 'result in millions of borrowers seeing drastically higher monthly student loan bills amidst an ongoing affordability crisis.' They emphasized the need for borrowers to have 'the time, critical information, and support necessary to successfully enroll in another affordable repayment plan and continue to pay down their loans.'"
"Nicholas Kent, the department's undersecretary, stated that eliminating SAVE will provide borrowers with clarity on their repayment options, asserting, 'For years, borrowers have been caught in a confusing cycle of uncertainty, but the Trump Administration's policy is simple: if you take out a loan, you must pay it back.'"
Democratic lawmakers are advocating for an extension of the timeframe for student-loan borrowers to switch from the SAVE plan to avoid increased monthly payments. The SAVE plan, designed to offer lower payments and quicker loan forgiveness, was eliminated in March after legal challenges. Starting in July, borrowers will have 90 days to transition to a new plan. Lawmakers express concern that this short timeframe could lead to financial strain for millions of borrowers amid an affordability crisis, requesting more information on the transition process and support for those unable to afford new payments.
Read at www.businessinsider.com
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