Groceries, rent, utilities...and student loans. This October, federal student loan borrowers can see $200 to $299 in costs needed to be factored into their monthly budget. 

After a three-year hiatus, federal student loan payments are set to resume in October, but Biden's SAVE program could help you reduce your monthly payments in half. 

Federal loan payments were halted during the COVID-19 pandemic, but their interest is set to resume on September 1 with payments starting in October. 

The Chamber of Commerce lists student loan debt at $1.7 trillion in the United States and as payments resume, Biden's Student Loan Repayment Plan may help loaners ease back into initial payments. 

Since the start of its presidency, the Biden-Harris Administration has endeavored reduce student loan debt. 

Their answer: SAVE, the Savings on a Valuable Education Student Loan Repayment Plan. 

SAVE is an income driven repayment plan, adjusting your payments based on your income and number of dependents. 

SAVE replaces REPAYE (REvised Pay as You Earn), which after consistent payments, some borrowers could see their payments cut in half. 

In their proposed regulation, published on January 10, 2023, the U.S. Department of Education writes: 

"The proposed regulations would amend the terms of the Revised Pay As You Earn (REPAYE) plan to offer $0 monthly payments for any individual borrower who makes less than roughly $30,600 annually and any borrower in a family of four who makes less than about $62,400. The regulations would also cut in half monthly payments on undergraduate loans for borrowers who do not otherwise have a $0 payment in this plan. The proposed regulations would also ensure that borrowers stop seeing their balances grow due to the accumulation of unpaid interest after making their monthly payments."

Loaners Eligible for SAVE | Federal Student Aid

"This change means a single borrower who earns less than $32,805 a year ($67,500 for a family of four) will not have to make payments. As a result, we estimate that more than 1 million additional low-income borrowers will qualify for a $0 payment, including 400,000 who are already enrolled on the REPAYE plan and will see this benefit applied automatically. This will allow them to focus on food, rent, and other basic needs instead of loan payments. Borrowers not eligible for a $0 payment will save at least $1,000 a year compared to the current REPAYE plan. A single borrower would save $91 a month on payments ($1,080 a year), while a family of four would save $187 ($2,244 a year)." - The U.S. Department of Education 

Here's a few changes that makes SAVE unique:

• Borrowers who pay what they owe, will not see their loans grow due to unpaid interest
• Married borrowers who file separately, will no longer need to include their spouse's income. If a borrower makes annual earnings of $30,000, they will not have to make any payments, according to the U.S. Department of Education.
• The income protected from SAVE rises from 150 percent (REPAYE) to 225 percent. 

To find what you qualify for, follow these steps. 

1. See if you're eligible for debt relief. 

According to Federal Student Aid: 

• To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households). 

• If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief. 

• If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt relief.  Your relief is capped at the amount of your debt. If you owe $15,000, you'll receive $15,000-not over. 

Borrowers employed by non-profits, military, government (federal, state, local, Tribal) may be eligible for the Public Service Loan Forgiveness Program (PSLF). 

Also, if you have been a teacher for five consecutive years, you can qualify for $17,500 forgiveness for special education teachers or $5,000 forgiveness for secondary elementary teachers. See the Teacher Loan Forgiveness application for more details. 

2. Sign up for a repayment plan.

You can choose from four plans, ranging from 5 to 20 percent of discretionary income and a repayment plan lasting for 20-25 years. 

If your loan balance isn't repaid at the end of your 20–25-year repayment period, the remainder amount will be forgiven. 

If you enter into economic hardship deferment, paying $0, those years will also count towards your repayment period. 

"Whether you will have a balance left to be forgiven at the end of your repayment period depends on a number of factors, such as how quickly your income rises and how large your income is relative to your debt." - Federal Student Aid

You can apply for a repayment plan through Federal Student Aid. 

Loans in default are not eligible for income repayment plans. 

3. Beware of scams.

You never have to pay for help regarding information on student debt relief. Be wary of organizations wanting to help with forgiveness or loan cancellation for a fee. 

You can also sign up for newsletters from the U.S. Department of Education about each topic and resources. You can sign up until December 31, 2023. 

For more information, view the FSA's student loan checklist.