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The Biden administration released a beta website for its new student debt loan repayment plan, the Saving on a Valuable Education (SAVE). Eligible borrowers can submit their applications on the U.S. Department of Education’s (DOE) website.The SAVE Plan
The SAVE plan is an income-driven repayment plan which may reduce borrowers’ monthly loan payments. The plan will determine loan sizes based on borrowers’ income and family size.
Individuals earning 225% of the federal poverty guidelines, or $32,805 for a single borrower or $67,500 for a family of four, can qualify for zero-dollar payment. One million additional borrowers will qualify for zero-dollar payments, while others may see their debt reduced by half.
Applications can be submitted on the DOE’s website. Borrowers who sign up for the plan this summer, will have their application processed before student loan repayments resume in October 2023. Borrowers who sign up during the beta application period, will not need to sign up again later.
Individuals will be able to see their exact monthly payment and choose the most affordable repay plan for them. They only need to apply once, instead of annually like past loan repayment requirements. Borrowers already enrolled in the existing Revised Pay As You Earn student debt loan repayment plan will be automatically switched to the new SAVE plan.
Due to regulatory timelines, some of the SAVE plan’s benefits won’t be implemented until next summer. Like the administration’s original student debt relief plan, these actions will likely face legal challenges.
Borrowers can contact their loan service to confirm if they qualify for student debt relief. They are also encouraged to visit the DOE’s website and sign up to receive the latest email and text updates for the latest information. Download the bulletin for more details.