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The SAVE Plan: Another path to student debt relief

The SAVE Plan: Another path to student debt relief
By AFSCME Staff ·

Over 870,000 public service workers, many of them AFSCME members, have had their student debt forgiven through the Public Service Loan Forgiveness program. Now, the Biden administration is helping lessen the burden on even more people struggling with student loans.

More than 7.5 million other Americans — including those in the public and private sectors, as well as those who are unemployed — have enrolled in the recently established Saving on a Valuable Education (SAVE) plan to get relief from unmanageable student debt loads. Vice President Kamala Harris and White House officials held a “SAVE Day of Action” on Wednesday.

SAVE is an income driven repayment plan established by the Biden administration that works with borrowers to create manageable repayment plans capped at 10% of borrowers’ income. SAVE can lead to the cancelation of the remaining debt after 10 years. In July, the income cap will drop to 5%.

According to the Associated Press, “More borrowers are now eligible to have their monthly payments reduced to $0, and many will qualify for lower payments compared to other repayment plans.”

And just as importantly, AP reports, “The SAVE plan prevents interest from piling up. As long as borrowers make their monthly payments, their overall balance won’t increase. Once they cover their adjusted monthly payment — even if it’s $0 — any remaining interest is waived.”

If you or a loved one have experienced the frustration of working hard to make payments on time while watching the total balance grow, you know this is a huge deal.

If you or someone you know is struggling with student debt but are ineligible for relief through other programs, we encourage you to look into the SAVE program. The program is open to any borrowers in the Direct Loan Program who are in good standing with their student loans.

You can find out more about the program and apply for relief through the link below

Apply Now

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