How the Modified REPAYE Plan Could Cut Student Loan Payments In Half for Millions of Borrowers

The Biden Administration announced a new income-driven repayment plan that can significantly benefit millions of student loan borrowers. Student Loan Advisors Meagan McGuire, CSLP®, and Conor Mahlmann, CSLP®, discuss the revamped REPAYE plan that was recently proposed. Find out how the modified plan increases the poverty line deduction and provides interest subsidies to lower payments for anyone on income-driven plans. Whether you have undergraduate or graduate loans, you'll learn the mechanics of how the plan calculates payments and how it could affect you. Meagan and Connor also note that the plan is still in the commenting period and may be subject to changes. In today's episode, you'll find out: The new plan isn't really a new plan at all The basics of the proposed modifications to the REPAYE plan How the increase in poverty line deduction can instantly lower your monthly payments The role of adjusted gross income (AGI) in calculating your payment amount The interest subsidy that can cut your payment amount How it impacts couples who file taxes as married filing separately The biggest differences between the old REPAYE plan and the new REPAYE plan Why switching to PAYE down the line might not be an option What is double consolidation and why it makes sense for some borrowers How consolidation of forgiveness credit works When PAYE is best vs. the new revamped plan What to watch for with the IDR Waiver