In August 2023, the Biden Administration finalized and officially launched a more affordable, income-driven repayment (IDR) plan for student loan borrowers titled the Saving on a Valuable Education (SAVE) Plan. This is one of the actions the Biden Administration is taking a result of the recent Supreme Court ruling that struck down the President Biden's student loan debt relief plan to forgive up to $20,000 in student loans for eligible borrowers.
Some key highlights of the new SAVE IDR plan include:
· Borrowers will have payments reduced from 10 percent to 5 percent of their discretionary income for undergraduate loans;
· Single borrowers whose income earnings are $32,800 or less or a family of four earning $67,500 or less will not have to make monthly loan payments and;
· Monthly payments won't grow due to unpaid interest as SAVE eliminates 100 percent of remaining interest for both subsidized and unsubsidized loans after a payment is made.
· Currently enrolled REPAYE plan borrowers will automatically have their plan transferred to the new SAVE plan before repayments start.
CSWE is proud to be part of over 100 groups joining the SAVE on Student Debt Campaign, an effort from the U.S. Department of Education (ED) and other government and non-profit entities, to encourage other public, private, and nonprofit sectors to spread the word about the new SAVE income-driven repayment (IDR) plan.
The SAVE on Student Debt campaign has recently announced a "Week of Action" taking place this week from September 11th through September 17th, where organizations are encouraged to organize workshops, webinars, or community fairs and post to social media platforms about the SAVE plan to increase awareness for students in need of student debt repayment assistance.
CSWE encourages you to get involved in the Week of Action by signing up here. A toolkit with examples of social media and outreach language, as well as examples of events and activities that can help spread the word on the SAVE plan is available here.
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