White House Launches SAVE Plan Website for Second Attempt at Student Debt Forgiveness

In a bid to provide relief to student loan borrowers, the White House unveiled the beta version of the Saving on a Valuable Education (SAVE) Plan website on Sunday. This move comes merely a month after the Supreme Court struck down the Biden administration’s initial student loan forgiveness plan, prompting the administration to pursue an alternative solution.

The Department of Education has initiated the test phase for the SAVE Plan website, opening applications in preparation for a full launch in the upcoming weeks. According to the program’s features, the SAVE Plan will offer forgiveness of monthly payments for low-income borrowers. Additionally, eligible applicants may qualify to have at least $1,000 per year in payments forgiven. The program aims to alleviate the burden of unpaid interest for debtors in the future.

Although the Department of Education has not disclosed the potential cost or number of beneficiaries for the new plan, it lauded the SAVE Plan as the “most affordable student loan repayment plan ever created.” A spokesperson for the department emphasized the program’s significance in supporting low-income borrowers and averting long-term debt challenges.

The Supreme Court’s decision to strike down the original student loan forgiveness plan necessitated a reevaluation of the administration’s approach. The previous plan aimed to cancel up to $10,000 in federal loans for individuals earning less than $125,000 per year and couples earning less than $250,000. Those who used Pell Grants during their college years could have received up to $20,000 in loan forgiveness. The proposed plan would have amounted to $441 billion in total student debt relief.

Addressing the legal concerns raised by the Supreme Court’s decision, the Department of Education expressed confidence in the authority granted to it by Congress to define the terms of income-driven repayment plans. The agency remains optimistic about the successful enactment of the SAVE Plan.

During the beta launch phase, applicants will not need to reapply once the program is fully operational, the Biden administration assured. The application process is designed to be quick and straightforward, with an estimated completion time of only 10 minutes or less. Throughout the testing period, the administration will closely monitor the website’s performance and make necessary refinements.

The SAVE Plan represents a crucial step in President Biden’s commitment to supporting students and borrowers, offering much-needed relief to millions of Americans burdened by student loan debt. With this innovative approach, the Biden administration aims to provide financial breathing room for borrowers now and in the years to come.