this post was submitted on 22 Aug 2023
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President Joe Biden on Tuesday launched a promotional blitz for his new program that helps student loan borrowers repay their debt, just weeks before millions of Americans are set to receive a loan bill for the first time since the beginning of the pandemic.

The Biden administration is mobilizing to convince borrowers across the country to sign up for the new income-driven repayment program — dubbed the “SAVE plan” — which caps interest accrual and lowers the monthly payment amount for many borrowers.

“It’s the most affordable student loan plan ever,” Biden said in a video released by the White House on Tuesday, describing the program as a major reform to a student loan system “that hurt borrowers for much too long.”

“If you’re eligible for the SAVE Plan, sign up now so you can lower your monthly payments in advance of payments resuming this fall,” Biden said.

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[–] Krauerking@lemy.lol 36 points 1 year ago (1 children)

Honestly whatever on the whole repayment thing cause I'm poor and fucked no matter what so... Meh.

But seriously can we fucking stop pretending the poverty line is real or even close to where they say it is? When every single benefits package and plan talks about a 200% increase from base poverty line or $20,000 over the base poverty limit for approval it just means poverty is much more common and a lot more expensive than we want to admit but it would freak out hundreds of thousands to realize just how poor they actually are.

Rip off the bandaid of bullshit poverty line adjustments and just be honest that the average American is low class now.

[–] billiam0202@lemmy.world 8 points 1 year ago

Yeah, the "temporarily embarrassed millionaires" probably don't want to know how embarrassed they actually are, or how permanent "temporarily" is.

[–] wrath-sedan@kbin.social 31 points 1 year ago* (last edited 1 year ago) (2 children)

This article doesn’t really say what the SAVE plan does so I’m reposting this here.

…the SAVE plan is coming in July 2024 to replace REPAYE, with some parts rolling out this summer and all the details here.

The department says that under the old plan, borrowers repaid $10,956 for every $10,000 they borrowed. Under the new plan, they would pay back just $6,121.

It’s more technical than direct forgiveness but will change income-based plans in the following ways according to this NPR article:

Starting Summer 2023:

  • floor for protected income rising from 150% to 225% of poverty line
  • no interest while payments are being made

Starting Summer 2024:

  • payments now based on 5% rather than 10% of borrowers’ remaining income
  • those who borrow $12,000 or less can gain full forgiveness in 10 years rather than 20 (with each additional $1000 adding another year so $13,000=11 years etc.)

It’s a start, hopefully someone sees this and saves some money.

Also want to add that these changes are not subject to Congressional approval. They could be repealed (impossible with a Dem Senate + Presidential veto) or they could be struck down by SCOTUS, but this is all being performed via powers given by the Higher Education Act and are generally on much firmer legal ground than the loan forgiveness plan SCOTUS scuttled.

[–] Mikey_donuts@lemmy.world 22 points 1 year ago (2 children)

Just applied tonight and looks like it should reduce my payment by about 50%.

[–] FlyingSquid@lemmy.world 6 points 1 year ago (1 children)

I'm so happy for you! I'm going to see if we can bring down my wife's grad school loan payments. They may not apply.

[–] Mikey_donuts@lemmy.world 4 points 1 year ago

Thank you! My loans are from law school and they qualified so definitely give it a shot. Good luck to you and your wife!

[–] Jackolantern@lemmy.world 5 points 1 year ago

Oh man that’s great! This is not the complete loan forgiveness I had hoped for but it’s a start and I hope lots more benefit from this especially the ones who needed it the most.

[–] Sanity_in_Moderation@lemmy.world 16 points 1 year ago (1 children)

No interest while payments are being made is absolutely gigantic. It's really a game changer.

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[–] bedo6776@lemmy.world 15 points 1 year ago (1 children)

The plan would decrease my payments by about $20/mo and would increase the total amount I would pay. Doesn't seem like it saves me anything. I'm better off continuing to pay my previous minimum payment and pay the loans off early.

I wish they would eliminate/lower the interest rate.

[–] shottymcb@lemm.ee 6 points 1 year ago* (last edited 1 year ago) (1 children)

It eliminates my wife's payments entirely with no interest accruing. Which is great because we're dirt poor at the moment.

[–] Cryophilia@lemmy.world 3 points 1 year ago

Which, if I understand correctly, is WHY it eliminated them.

[–] sturmblast@lemmy.world 7 points 1 year ago* (last edited 1 year ago) (1 children)

the current brand new super great SAVE repayment plan that I have access to literally increases my payment by $100 a month

[–] Cryophilia@lemmy.world 2 points 1 year ago (1 children)

Were you able to refuse the new plan and keep your old one? I'd like to check it out to see if my interest rate goes down, but I don't want to get locked into super high payments.

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