SAVE Program: Joe Biden, a President of Delaware, introduced the Saving on a Valuable Education (SAVE) Plan at the end of August. It is a federal program that will help millions of Americans pay off or refinance their student loans.
As soon as the application period started, almost 26 million borrowers signed up for the program. This made state governments and lender groups backed by the Republican Party act right away.
The program has been put on hold while the Supreme Court looks into the complaints it has received. As a result, it is not yet clear if it will resume as planned or if applications will be accepted again.
The applications that were sent in while the program was open are now on hold and will be looked at again as soon as it opens again. The app that lets you send in applications will work until December 31, 2023, but what happens to the program after that depends on what the Supreme Court decides.
What does SAVE mean?
The Revised Pay As You Earn (REPAYE) Plan will be replaced by the SAVE program. People who were already enrolled in the REPAYE Plan will automatically get SAVE benefits.
The Biden administration’s new plan is one way the federal government is trying to help people who have student loans pay less.
SAVE wants to forgive up to $20,000 in federal student loans for people who get the Pell Grant, who make less than $125,000 a year as an individual, or who make less than $250,000 a year as a married couple.
But the plan is only for people who owe money to federal programs. People who have private loans will not be able to get help unless they refinanced a federal debt with a private lender during the pandemic.
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While SAVE’s case is being heard in court, people with student loans can use programs like the Total and Permanent Disability Discharge program, the Borrower Defense to Repayment program, the Public Service Loan Forgiveness program, and the Income-Driven Repayment Plan Forgiveness program.
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