White House Launches New Debt Forgiveness Plan for Student Loans After Supreme Court Rejects Initial Proposal

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This move comes just a month after the Supreme Court rejected their initial proposal.

White House Launches New Debt Forgiveness Plan
White House Launches New Debt Forgiveness Plan ( Photo: CNBC )

The White House has initiated a new attempt at a student debt forgiveness plan, launching a test website called the Saving on a Valuable Education (SAVE) Plan

The Department of Education announced that the SAVE Plan website is now accepting applications, with a full launch expected in the near future. Under the debt forgiveness plan program, low-income borrowers will have their monthly payments forgiven, while other eligible applicants may receive forgiveness of at least $1,000 per year.

Although the exact cost and coverage details of the debt forgiveness plan have not been disclosed, the Department of Education assures that the SAVE Plan will prevent debtors from accumulating unpaid interest in the future. They tout it as the most affordable student debt forgiveness plan ever created. The Biden administration‘s previous plan, which aimed to cancel up to $10,000 in federal loans for lower-income individuals and couples, as well as up to $20,000 for those who utilized Pell Grants, was deemed unconstitutional by the Supreme Court. The Department of Education believes that its new debt forgiveness plan, backed by Congress, will overcome legal challenges.

The beta launch of the SAVE Plan website does not require reapplication once the debt forgiveness plan program is fully launched, and applications are expected to take only 10 minutes or less

A spokesperson from the Department of Education expressed confidence that the new debt forgiveness plan will fulfill President Biden‘s commitment to supporting students and borrowers, offering relief to millions of Americans burdened by student loan debt.

 

READ ALSO: Biden’s New Student Loan Plan: Addressing The Growing Debt Crisis

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