Why Biden’s New SAVE Student Loan Income-Driven Plan Is a Game Changer - Column

Columnist Michelle Singletary writes:  For many student-loan borrowers, interest capitalization has been the bane of their existence. It’s why loans that might have been reasonably affordable become financially debilitating after years of deferment or forbearance. Balances balloon when a borrower’s monthly loan payments do not cover the interest because it’s tacked onto the principal. Interest is then applied to the new, larger loan amount.