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Many student loan borrowers are in for a big, bad surprise in 2025

  Copy link into your clipboard //business-finance.news-articles.net/content/202 .. owers-are-in-for-a-big-bad-surprise-in-2025.html
  Print publication without navigation Published in Business and Finance on by Yahoo Finance
          🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
  The relatively high rate of default on student loans has long been a source of frustration for education policymakers. In 2019, about 10% of debtors had fallen into default within three years of starting repayment — down from years past but still vastly higher than the delinquency rates on mortgage or auto loans.

The article from Yahoo Finance discusses the impending resumption of student loan payments in October 2023, following a three-year pause due to the economic impacts of the global health crisis. It highlights that many borrowers might be in for a "big, bad surprise" in 2025 when the Biden administration's new income-driven repayment (IDR) plan, known as the SAVE plan, will see its most generous benefits expire. This plan currently offers reduced payments and interest subsidies, but these benefits are set to decrease significantly. Borrowers could face higher monthly payments and increased interest accumulation, potentially leading to a sharp rise in their loan balances. The article also notes that while the SAVE plan aims to make loan repayment more manageable, the future adjustments could undo much of the financial relief initially provided, urging borrowers to prepare for these changes.

Read the Full YAHOO!Finance Article at:
[ https://finance.yahoo.com/news/many-student-loan-borrowers-are-in-for-a-big-bad-surprise-in-2025-110025859.html ]