White House Unveils Student Loan Relief Plan Details

White-house-unveils-student-loan-relief-plan-details

The White House launched a new website to promote a program aimed at assisting debtors one month after the Supreme Court invalidated the Joe Biden administration’s student loan forgiveness plan.

On Sunday afternoon, CNN broke the news of the Saving on a Valuable Education (SAVE) initiative, which broadens the possibilities available to borrowers with modest incomes.

After an original plan to forgive up to $20,000 in student loan debt for millions of borrowers was rejected in late June, the Biden administration has tried to find ways to fulfill a campaign promise.

The Department of Education stated in a statement about the new program that “the SAVE plan will cut payments on undergraduate loans in half compared to other [income-driven repayment (IDR)], ensure that borrowers never see their balance grow as long as they keep up with their required payments, and protect more of a borrower’s income for basic needs.”

In October, new student loan installments are scheduled to start. 

New Student Loan Benefits Take Effect in 2024

White-house-unveils-student-loan-relief-plan-details

The White House launched a new website to promote a program aimed at assisting debtors one month after the Supreme Court invalidated the Joe Biden administration’s student loan forgiveness plan.

As part of the COVID-19 relief package, they were put on hold in the spring of 2020, and former Presidents Donald Trump and Joe Biden both extended them by executive order.

The Department of Education is authorizing some benefits that had been put on hold due to the pandemic before student loan borrowers are required to start making repayments this fall, even though the new plan won’t completely take effect until July 1, 2024.

By the time people enroll in the plan this summer, their bill may have changed.

According to the Department of Education, the SAVE plan will significantly increase the number of borrowers who can qualify for $0 monthly loan payments, providing additional help to 1 million borrowers.

In comparison to the current Revised Pay-As-You-Earn (REPAYE) plan, borrowers earning less than $15 per hour will be eligible for $0 payments, while those who are not will still save at least $1,000 per year on payments.

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