A tool called the “SAVE Plan” is already fully in force, which some 30 million student loan recipients can take advantage of. The measure limits interest accrual and lowers the monthly payment amount that impacts the vast majority of borrowers today.
On Tuesday the 23rd, President Joe Biden launched a major mobilization to convince borrowers across the country to enroll in the new income-based repayment program, called "Saving on a Valuable Education." Valuable Education or SAVE Plan).
From the White House, and accompanied by the Secretary of Education, Miguel Cardona, President Biden launched the initiative with only two months to go before those millions of Americans receive a student loan bill for the first time since the beginning of the COVID pandemic. -19.
The program was born in response to the Supreme Court's decision to annul the student loan relief plan that the Biden administration had proposed months ago.
Its app is expected to help some 30 million borrowers, according to management estimates.
“It is the most affordable student loan plan ever,” Biden said in the video released by the White House on Tuesday. He described the program as a major reform to a student loan system "that hurt borrowers for far too long."
“If you are eligible for the SAVE Plan, sign up now so you can lower your monthly payments before payments resume this fall,” Biden urged.
to register
Borrowers will need to enroll in the next few days for the new monthly amount to qualify when payments resume in October.
- In a White House statement, it was announced that borrowers with an annual income of less than $30,000 will have a monthly payment of $0 (zero dollars) until their income increases.
- Higher income borrowers may also have a $0 monthly payment depending on family size.
- A typical borrower will save about $1,000 per year through this plan, the White House said.
- Payments are calculated based on borrower income and family size, not loan balances. Remaining balances are forgiven after a certain number of years.
- Borrowers can register with gov/SAVE.
- The Department of Education and loan servicers will communicate directly with some 30 million borrowers.
- Borrowers who were already enrolled in the pre-existing Revised Pay As You Go (REPAYE) plan will automatically be enrolled in the SAVE plan.
- Individuals will not need to recertify once they are enrolled.
CHUCK SCHUMER: “A BIG STEP FORWARD”
Senate Majority Leader Charles Chuck Schumer praised the SAVE plan announced by President Biden.
- "It's a big step forward in lessening the overwhelming debt burden that falls on so many borrowers."
- “Low-income students, whose burdens will be cut in half, and most other students, who will never pay more than 5% of their income, will breathe a sigh of relief in every corner of the nation.”
- "While there will be those who challenge this plan in court, the administration has carefully mapped out the legal aspects."
- “The fight to cancel student debt is far from over, but this is a big step in the right direction,” Schumer said.
