Federal government launches website to help people save on their student loans

Summary:

• The education department launched a new website for student loan borrowers to explore payment options for their loans post-resumption in October.
• The website introduces a 'save plan' which offers borrowers, especially those with lower income and family size, significantly reduced monthly payments, potentially as low as $0.
• Borrowers enrolled in the save plan can avoid accruing interest on their student loans while not making any monthly payments.

The education department launched a new beta website this week where student loan borrowers can log in and see all of their options for paying off their student loans when payments resume in October.

One of those options is the new save plan. For most borrowers, they will see an overall lower payment plan than what they were paying before. Kim Miller with Lutheran Social Service says the save plan looks at the borrower's income and family size to determine how low their required monthly payment should be. For many on the lower end, that number will be $0 a month. Miller says that means borrowers on the plan can sign up, not pay anything, and still avoid racking up interest on their student loans.