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The U.S. Education Department launched a beta version of the application for its new income-driven repayment plan, CNN reported.
Biden administration officials finalized the more generous repayment option in late June after the Supreme Court struck down the one-time debt relief plan. Payments are set to resume in October following a three-year pause.
The application is expected to take 10 minutes to fill out, and borrowers can opt to share tax return information to automatically fill out some sections, according to CNN. Those already enrolled in REPAYE, or Revised Pay As You Earn, will be automatically switched into the new plan known as Saving on a Valuable Education (SAVE).
“Part of the president’s overall commitment is to improve the student loan system and reduce the burden of student loan debt on American families,” a senior administration official told CNN. “The SAVE plan is a big part of that. It is important in this moment as borrowers are getting ready to return to repayment.”
Under SAVE, millions of borrowers could have no monthly payments on their loans as part of the first round of changes that took effect July 31. Undergraduate borrowers would see their payments cut in half starting next summer, while those who borrowed $12,000 or less would be eligible for forgiveness after making payments for a decade, among other changes.
