The Biden-⁠Harris Administration Launches the SAVE Plan

As we all know too well, the previously proposed Federal Debt Forgiveness program has been shut down by the supreme court. I don’t think most of us had any real hope that it would make it through the courts which would have provided much needed assistance to millions of Americans by paying up to $20,000 dollars of federal student loans if you made less than $125,000 and were a Pell Grant recipient during your schooling.

Nerveless, the Oval Office gang has provided us with the opportunity to slowly adjust ourselves to repayment which can feel foreign to most considering that it has been 3 years since many have had to make a payment. Under this new program called the SAVE Plan it’s estimated that over 20 million Americans will benefit from it making it a challenge for the previously proposed bill.

The SAVE Plan

1. Cuts payments on under graduate loans from 10% to 5% of their discretionary income. Discretionary income is what you have left over every month after you pay your essentials like rent and utilities.

2. The bill will bring the loan payments of many borrowers to $0 per month if the individual meets the definition of being in poverty which you could be amazed to know is $15 a hour and under for a single person. Makes you question the federal minimum wage of $7.25 and hour huh.

3. The balance of your loan will never grow as long as payments are made on time and the account does not go delinquent.

4. Provides early forgiveness for low-balance borrowers. Now this has been a sore point in the history of those with a minority mindset but we are here to tell you not to rely on this and make . . . your . . . payments.

You can find more information on the new plan below and remember to stay diligent and get out of debt.

https://www.whitehouse.gov/briefing-room/statements-releases/2023/08/22/fact-sheet-the-biden-harris-administration-launches-the-save-plan-the-most-affordable-student-loan-repayment-plan-ever-to-lower-monthly-payments-for-millions-of-borrowers/

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