By Miriam Raftery

August 23, 2023  (Washington D.C.) – On Tuesday, the Biden launched an application for a new student loan repayment plan called the SAVE Plan, or  Saving on a Valuable Education Plan. Borrowers can sign up and learn details at https://studentaid.gov/announcements-events/save-plan .

This is a revised plan after an earlier effort to forgive student loans was blocked by the Supreme Court, though Republicans have also filed a challenge to the new plan.

The new SAVE plan calculates repayment based on the borrower’s income family size. According to the White House fact sheet, it will cut many borrowers’ monthly payments to zero,  save others around  $1,000 a year,  and prevent balances from growing because of unpaid interest. 

Specifically, the SAVE plan will:

By Jake Christie

February 20, 2013 (San Diego’s East County)--I could’ve called it a “bomb” or a “fiasco”, but I prefer to call the mess that is the American private and public student loan system a “freight train” because the light at the end of the tunnel is an oncoming high-speed double diesel pulling 25 cars full of heavy loads.  The numbers surrounding the student loan mess are horrifying; the total student loan debt out is one trillion dollars, which is the entire US government budget in a year. Of that amount, $76 billion is in default, though Allan College of StudentLoanJustice.org put out a press release* doubting that figure because even defaulted loans have interest piled on top of them.