Some student loan borrowers have begun making payments ahead of t🐬he Oct. 1 ൲deadline and have been surprised to see how much their payments are impacted. 

Under the 澳洲幸运5官方开奖结果体彩网:new SAVE plan, payments are 10% of the borrower’s disposable income, defined as whatever they make beyond 225% of the poverty line. That means single borrowers who make $32,800 or less, or a family of four earning $67,♔500 or less, will have payments of $0ꩲ. 

After borrowers make payments —even $0 payments—for 20 years (or 25 ✤for grad school loansꦍ), any remaining balance is forgiven. Starting next July, payments will be even lower because borrowers with undergrad loans will only have to pay 5% of their income.

That’s a welcome development for borrowers, many of whom are in 澳洲幸🅷运5官方开奖结果体彩网:very different financial situations than they were three years ago when they last madꦡe payments. 

While a typical graduate of a four-year public university will save nearly $2,000 a year, borrowers in certain situations could save much more. Only 22% of bachelor’s degree borrowers will have to pay the full balance of their loans, and 11% of those with associate's degrees, the Urban Institute calculated.

The plan is most advantageous♉ for borrowers with lower incomes and higher loan balances.

On social media, some student loan borrowers were surprised at how much their pa♐yments went down by enrolling in SAVE. One Reddit user posted that their payment♛s on $250,000 worth of student loan debt would only be $78 a month. 

“I w𒆙as p💙retty shocked that it would be so low,” the user wrote. 

Ano𓃲ther posted that their $1,479 a month payments went down to $179 after they called their student൩ loan servicer and switched to SAVE. 

“My kid likes to eat and have a house to live in (and so do I!), so I decided to just buckle down and get through a call, and I'm so glad I did,” the user wrote.

This article is the third in a five-part series reviewing the changes to the student loan landscape over the three years that payments on federal student loans have been paused. Other installments cover the changing financial situation of borrowers, changing rules for interest accumulation, how millions of borrowers got their loans forgiven under President Joe Biden, and other ways that the rules have been altered.