Wednesday is the Biden administration’s “SAVE Day of Action,” designed to promote the Saving on a Valuable Educationunder which monthly student loan payments are as low as $0 for lower-income borrowers and loans can be written off completely after as little as 10 years.
“President Biden and I know that far too many people in our nation are struggling with student loan debt,” Harris said. “That is why we have forgiven nearly $144 billion for almost four million Americans while also creating the SAVE Plan so that millions of people can cut their payments in half or entirely.”“From a policy perspective, the SAVE plan is a disaster,” said the CATO Institute’s Andrew Gillen. “It will cost taxpayers $475 billion just over the next ten years.
SAVE adjusts previous income-driven repayment programs by reducing student loan payments from 10% to 5% of income, increasing the income exemption from payment from 150% to 225% of the poverty line, and reducing the length of repayment from 20 years to 10 years for some borrowers. Some scholars have argued it effectively turns student loans into“From an individual perspective, there is nothing a student loan borrower can do about that,” he said.