Despite the blow dealt to debt forgiveness by the Supreme Court late last month, the Biden administration is pushing ahead with a new proposal meant to help millions of Americans.
The Biden administration introduced the Saving on Valuable Education (SAVE) plan to transform the old IDR system into what the Department of Education called “the most generous” student repayment option ever given to borrowers.
The plan makes multiple significant changes that will lower the monthly payment for many borrowers. Some could see their bill go to $0 a month by enrolling in the program.
A single person earning less than $32,805 a year will have monthly payments of $0. The same would happen to families of four that make less than $67,500.
“This is something that we believe will help millions of people,” said Cody Hounanian, executive director of Student Debt Crisis Center. “I think it’s important to recognize that the SAVE program is going to make a positive difference in people’s lives.”
The Hill’s Adam Barnes and Lexi Lonas break it down here.
