Replacing the Revised Pay As You Earn Plan, the new initiative expands the income exemption to 225% of the poverty line, up from 150%.
The U.S. Department of Education will unveil a beta website on Sunday to facilitate applications for the “student loan repayment plan” introduced under President Biden’s SAVE Plan
It eradicates 100% of the remaining interest on subsidized and unsubsidized loans once payment is made while disregarding spousal income.
The Biden administration emphasized that the President’s commitment lies in enhancing the student loan system and alleviating the burden of student loan debt faced by American families. The student loan repayment plan is a crucial step in achieving this objective.
President Biden expressed frustration, stating that the money was nearly ready to be disbursed when Republican officials and special interests intervened to block it, denying relief to working-class and middle-class Americans
It is anticipated to save borrowers a minimum of $1,000 annually, as confirmed by the White House. Furthermore, some borrowers may become eligible for loan forgiveness after a decade of repayment.
The SAVE plan website is set to launch in August, providing comprehensive access to the program’s benefits and application procedures.