Despite the Supreme Court ruling earlier in the month to strike down Biden’s student loan forgiveness plan, the Biden administration has put forth another plan.

The Biden administration has announced it would forgive over $39 billion dollar worth of student loans which equals up to $804,000 borrowers.

The new student loan relief called the SAVE plan calls for ” for Saving on a Valuable Education — that will save borrowers thousands of dollars by keeping their monthly payments small (as small as $0) while also preventing interest from exploding what they owe.”

According to the Department of Education the new SAVE plan will be an income-driven repayment plan that will “phase out the current Revised Pay As You Earn plan (REPAYE).”


Per The Hill:

The Biden administration has announced that it will provide $39 billion in total student debt relief for 804,000 borrowers, its latest step since President Biden’s student loan forgiveness plan was struck down by the Supreme Court.

The Education Department said Friday the relief is being provided on income-driven repayment plans, in which the federal government cancels remaining balances for the borrower after they have made their payments for 20 or 25 years.

The department said the “fixes” will more accurately count monthly payments that qualify under the plans, and it will notify borrowers who are eligible for the relief in the upcoming days.

The Supreme Court struck down Biden’s plan to give $10,000 of student debt relief to low- and middle-income borrowers and up to $20,000 for Pell Grant recipients in a 6-3 decision last month. The majority found Congress had not directly authorized the president to forgive debts worth hundreds of billions of dollars.

Check out Forbes:

More than 800,000 federal student loan borrowers will have their debts automatically forgiven, the Biden Administration said Friday, citing administrative deficiencies that failed to account for some of the borrowers’ payments.

The loans will be “automatically discharged in the coming weeks,” the Department of Education said in a statement, adding that it will begin notifying the 804,000-plus eligible borrowers on Friday and discharges will begin 30 days prior to notification.

The move comes two weeks after the Supreme Court tossed President Joe Biden’s signature student-loan forgiveness program that promised to forgive up to $20,000 in debt for 43 million federal borrowers.

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