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The Biden Administration has introduced a "beta website for its new income-driven student loan repayment plan" that will allow "borrowers to begin submitting applications for the program as federal student loan payments are set to resume in October."
After the Supreme Court struck down Biden's student debt forgiveness plan in June, the administration has introduced the SAVE (Saving on a Valuable Education) plan to make a "significant change to the federal student loan system." The SAVE plan sounds like a great thing because it "could lower monthly loan payments for some borrowers and reduce the amount they pay back over the lifetime of their loans."
"Part of the president's overall commitment is to improve the student loan system and reduce the burden of student loan debt on American families," a senior administration official said, previewing the beta website first to CNN. "The SAVE plan is a big part of that. It is important in this moment as borrowers are getting ready to return to repayment."
"We will be able to show borrowers their exact monthly payment amount and give them the ability to choose the most affordable repayment plan for them," one official said.
According to ABC 7, the enrollment process should take about 10 minutes and can be accessed at the beta website here. Borrowers will only need to apply once and will receive a confirmation email once the application is submitted. Borrowers can also track the approval process online and it's expected to take a few weeks. The SAVE plan website will fully launch in August and anyone submitting their application during the beta period won't need to reapply. A really great thing about the SAVE plan is that "unpaid interest will not accrue if a borrower makes their full monthly payments." For more, click here.