Maximizing Impact: How a Simple Administrative Policy Shift Could Expand Access to Homeownership for Potential Buyers Repaying Student Loans Under the SAVE Program
The Department of Education’s newly launched income-driven repayment (IDR) program, “Saving on a Valuable Education (SAVE),” represents a significant step forward in improving the affordability of federal student loan repayments for millions of borrowers. SAVE accomplishes that goal by basing repayment on a realistic estimate of a borrower’s discretionary income considering the borrower’s family size and reducing the amount of income that applies to repayment by half. The plan also prevents unpaid interest from increasing a borrower’s loan balance and ensures that any remaining balance is...