By Miriam Raftery
August 23, 2023 (Washington D.C.) – On Tuesday, the Biden launched an application for a new student loan repayment plan called the SAVE Plan, or Saving on a Valuable Education Plan. Borrowers can sign up and learn details at https://studentaid.gov/announcements-events/save-plan .
This is a revised plan after an earlier effort to forgive student loans was blocked by the Supreme Court, though Republicans have also filed a challenge to the new plan.
The new SAVE plan calculates repayment based on the borrower’s income family size. According to the White House fact sheet, it will cut many borrowers’ monthly payments to zero, save others around $1,000 a year, and prevent balances from growing because of unpaid interest.
Specifically, the SAVE plan will: