In the two weeks since its late July launch, 4 million people have signed up for the new student loan repayment plan program from the Biden administration.
As student loan payments are about to start in October following a years-long halt due to the global crisis, more than 4 million people have already signed up for SAVE, President Joe Biden’s new student loan repayment plan.
SAVE (Saving on a Valuable Education) program, the new student loan repayment plan , which was introduced earlier this summer, is open to the majority of borrowers of federal student loans and can significantly ease their debt-paying obligation.
Most of the individuals who had already enrolled in SAVE, the new student loan repayment plan, had been automatically switched from the Revised Pay As You Earn (REPAYE) repayment plan, which was a distinct repayment option.
Applying for the SAVE plan, the new student loan repayment plan is required for borrowers who were not registered in REPAYE.
The Department of Education reported on Tuesday that more than 1 million people have applied for the new student loan repayment plan.
Borrowers may apply to the new student loan repayment plan at any time, however, they are advised to do so as soon as possible if they wish to be accepted before their October payment is due.
For the first time since March 2020, interest started to accrue on federal student loans on September 1.Rates were effectively zero during that time and borrowers were not required to make regular payments.
In October, borrowers can anticipate receiving a bill from their servicer at least 21 days before their payment is due.
Prior to the start of payments, Biden advocated for low and middle income borrowers to have up to $20,000 in student loan debt forgiven;however, the program was invalidated by the Supreme Court in late June.
The SAVE plan which is the new student loan repayment plan,as opposed to the onetime cancellation notion,can help both current and future borrowers.
Last August, the Biden administration first disclosed that a new student loan repayment plan strategy was in the works.
The Penn Wharton Budget Model estimates that SAVE,the new student loan repayment plan will cost $475 billion over a ten year period.