• Electricdoggo@lemmy.world
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    1 year ago

    The forgiveness applies to anyone who enrolls in the new plan, not just existing loans.

    New plan is 10 yrs for <= $12k in loans, increasing a year for every $1k additional, so for example, someone who takes out $20k in loans can have the remainder forgiven after 18yrs of payments.

    The 20/25 yrs was the old forgiveness plan with lower principal loan and income levels.

    Additionally, if you’re making your monthly payments, no interest accrued.

    • medgremlin@lemmy.sdf.org
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      1 year ago

      The “no interest accrued” bit is huge for the medical community. Newly graduated doctors with hundreds of thousands in loans were getting absolutely ruined by runaway interest while they were in residency on income driven repayment plans. Now, combine the SAVE plan with PSLF, and medical school is suddenly a lot more viable as an endeavor.