2023-08-23 08:09:23
President Biden promoted the new student loan relief plan.
Foto:
Chip Somodevilla / Getty Images
President Joe Biden on Tuesday launched the promotion of its new program that helps student loan borrowers pay down their debt, just weeks before millions of Americans receive a student loan bill for the first time since the start of the Covid pandemic.
The Biden administration is moving to convince borrowers across the country to sign up for the new income-based repayment program, called the “SAVE plan,” which limits interest accrual and lowers the monthly payment amount. for many borrowers.
The “Saving on a Valuable Education” (SAVE) plan comes months after the Supreme Court struck down Biden’s student loan relief plan, as the administration has proposed new ways to relieve student debt for tens of millions of borrowers.
It is expected to help more than 20 million borrowers, according to the administration.
“It’s the most affordable student loan plan ever,” Biden said in a video released by the White House on Tuesday, describing 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 said.
Borrowers must enroll in the next few days for the new monthly amount to qualify when payments resume in October.
Borrowers with annual income less than $30,000 will have a $0 monthly payment until their income increases.
Higher income borrowers may also have a $0 monthly payment depending on family size.
The typical borrower will save about $1,000 per year through this plan, the White House said.
The Biden administration forgave $39 billion of student loan debt in July for 804,000 borrowers.
How does it work
SAVE is an income-based repayment plan.
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 at StudentAid.gov/SAVE. The Department of Education and loan servicers they will communicate directly with some 30 million borrowers.
Student loan payments will restart in October, after a pause in response to the COVID-19 pandemic. 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.
Keep reading:
– Biden administration to forgive $39 billion in student loan debt
– Some 16,000 borrowers in Washington are eligible for student debt forgiveness
– Members of Congress and Leaders Condemn Supreme Court Ruling Ending Student Loan Relief
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