Biden highlights SAVE plan reducing student loan payments for millions to $0 per month
Beginning this summer, millions of Americans with student loans will be able to enroll in the SAVE plan, a new repayment plan from the Biden administration that cuts monthly student loan payments for many to $0, according to the Wisconsin State Journal.
The plan offers some of the most lenient terms ever, with a lack of interest accumulation as long as borrowers make regular payments and a cancellation of debt after as little as 10 years.
Announced last year, the plan has been mostly overshadowed by President Joe Biden’s proposal for mass student loan cancellation; however, with the Supreme Court’s recent strike-down of Biden’s forgiveness plan, the repayment option is receiving new attention.
Biden has said the typical borrower who enrolls in the plan will save $1,000 per month. Republicans have opposed the plan, arguing it oversteps the president’s authority and is unfair to the 87% of Americans who don’t carry student loans.
Previous estimates from the Congressional Budget Office say the plan will cost $230 billion over the next decade. That number would be higher now that the forgiveness plan has been struck down. University of Pennsylvania estimates put the cost at $361 billion.