This week, a Broke & Bothered reader asked Reckon, ‘What’s the Biden student loan SAVE plan?’

We gave them the run down and now we’re giving it to you too because sharing the wealth and knowledge is even more crucial as we inch closer to October.

The Biden Student Loan SAVE (Saving on a Valuable Education) plan is an income-driven payment plan that will offer the lowest monthly student loan payments based on the borrower’s income and family size.

5 fast facts about the SAVE plan:

• Borrowers currently on the Revised Pay As You Earn Plan (REPAYE), an income-driven payment working to cap payments at 10% of the discretionary income and forgive the rest of your student loans after 20 or 25 years of repayment, will be put on the SAVE Plan automatically. In October, the SAVE plan will replace REPAYE.
• Loan payments for some borrowers could come to $0 per month with the SAVE plan especially if a borrower’s monthly payment amount is based on their discretionary income. The Department of Education estimates that more than 1 million additional low-income borrowers will qualify for a $0 payment.
• The SAVE plan will reduce payments for borrowers with undergraduate and graduate loans. These borrowers will be paying a weighted average between 5% and 10% of their income based on the original principal balances of their loans.
• More than 4 million Americans have enrolled in SAVE so far, while the borrowers will be able to apply on an ongoing basis, the Department of Education is encouraging people to apply sooner rather than later if they want to be enrolled by the time they are required to make a payment on their student loans in October.
• The SAVE plan might not be the right choice for every borrower, so use the online loan simulator tool at StudentAid.gov to review all payment options.

Learn more about the SAVE plan here.

I Ain’t Got It

For a lot of people, resuming student loan debt payments will mean their lives are turned upside down and inside out. Understanding the weight of this debt, Reckon asks readers like you who are worried about their finances, future, family and more to tell us what debt relief would mean for them. Each week, we’ll share a story that provides a glimpse into a borrower’s life.

Name: Sara Lynn Bandt

Student loan debt: $59,000 

Location: Minnesota 

Age: 35

If debt payments resume: By resuming student loan payments, I won’t be able to start saving for a home. A dream I have always had. I just can’t afford it.

“Student loan forgiveness isn’t enough. Other countries offer free college, why can’t the supposed best country in the world do the same. I don’t just think that student loans should not just be forgiven, but college should be free as it is. I plead, please forgive mine and everyone’s student loan debt, and go a step further and make tuition free for our future children. Give hope to families who dream of their children having a better life, than they could have dreamed for them.”

Do you have a student loan debt story you want to share with Reckon? Your story is just as important as Sara Lynn’s and you can share it with us too. Send Alexis an email at [email protected] or take a few minutes to fill out this Google form.

A movement for your money

If you’ve made it this far into a newsletter called ‘Broke & Bothered’, it won’t be an absolute shock when I tell you Millennials and Gen Zers are the poorest generations in U.S. history. By comparison, we have more debt, the lowest wages, very little, if any, savings WHILE ALSO paying the highest childcare and rent in history and entering the workforce during the worst economic crises since the Great Depression.

But I don’t need to tell you all that. You’re likely already experiencing at least one stressor of the above. So, HOW in the broke and bothered are we supposed to feel like we have any control over our financial wellbeing? We’re turning to some of our favorite TikTok and Instagram accounts for tips and tricks.

• Tori Dunlap (@herfirst100k). A great go-to if you feel like you’ve got budgeting down but want to know how to build your wealth through investments, high-yield savings accounts, 401(k)s and all those other things that may sound like a foreign language.
• Simone (@simonesdays). Looking for financial tips alongside your GRWM TikToks? Sometimes it’s easier to think about your money on a smaller scale, day by day, not big picture.
• Naomi Nyarko (@naomiimedrano). Get a better understanding of how to budget your paycheck every week, learn about starting your own business and how to share your finances with a partner.
• Vivian Tu (@your.richbff). Mix your money managing, travel and career tips with deep dives on what Wall Street is like and how much Bama rush costs.
• Baddies and Budgets (@baddiesandbudgets). If you work a lot with cash or find it the easiest way to manage your money, the envelope method of budgeting may be your way to go.

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Borrowers are worried about the future of affording and paying back their student loans. Are you one of them? Share your story and thoughts here with Reckon.