After several weeks in beta testing, on Aug. 22 the Biden Administration officially opened its website for eligible borrowers to apply for its newest student loan repayment program. This latest income-driven repayment (IDR) plan – tied to income and family size – is set to go fully into effect on July 1, 2024. Still, it provides several benefits before the student loan payment pause in effect for the last three years ends next month.
A fact sheet outlines what the new Saving on a Valuable Education (SAVE) plan means for loan borrowers who apply now. It decreases monthly payments by increasing the income exemption from 150 percent to 225 percent of the poverty line, eliminates 100 percent of remaining interest for both subsidized and unsubsidized loans after a scheduled payment is made and excludes spousal income for borrowers who are married and file separately.
This new program follows the Supreme Court’s decision earlier this summer to overturn the Administration’s previously proposed loan cancellation plan and could see its own legal challenges in the coming months. AAOMS staff will continue to monitor this issue.
