(FixThisNation.com) – On Tuesday the Biden administration is going to officially roll out their SAVE plan which will be the latest attempt at student debt relief that President Biden is going to attempt. His previous debt relief plan was struck down by the Supreme Court.
Miguel Cardona, the Education Secretary, along with Biden and other administration officials announced the plan on Tuesday. The SAVE plan would pause payments for all borrowers who are making around $15 an hour. Those making above that amount are going to be able to save around $1,000 a year when compared to other income-driven plans for repayment.
President Biden stated in a video that the White House released, that under the plan they were introducing anyone who was making payments would not see their loan balance grow any further because of interest that was unpaid. He further added that the monthly payments would be determined by a borrower’s income rather than their student loan balance.
Cardona in his statement noted that this plan is an important step in President Biden’s efforts to “fix the broken student loan system” while also working to help borrowers and working families deal with their student loan debt
Neera Tanden, the White House domestic policy adviser, stated that the SAVE plan was going to be a “game changer” for Americans.
However, the Committee for a Responsible Federal Budget has argued that the effects of this new plan would be felt by taxpayers as the new repayment options provided are going to cost at least $276 billion.
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