Bidens Student Loan Repayment Program – Things You Should Know

College degrees should provide the key to middle class success, yet over 43 million Americans carry $1.7 trillion of student debt — keeping them

from buying homes or starting families. President Biden and the Education Department have taken steps to ease that burden; one plan being considered involves offering loans forgiveness but it will likely encounter legal hurdles.

On Monday, the White House unveiled more details for what it calls its “plan B” for canceling student debt a year after its first attempt was struck down by the Supreme Court. This second attempt relies on different legal authorities, builds off existing programs which haven’t experienced much legal opposition and can more closely cater to individual situations than its predecessor.

How it Works: Its The Plan, known as SAVE, would make it easier for low-income borrowers to qualify for income-driven repayment plans and forgive any loans not paid back after 20 or 25 years. In addition, consolidating loans could lower interest rates or combine multiple forms of debt into one manageable monthly payment – saving billions over time and cutting total amounts owed by over half for some 1.6 million of the most vulnerable borrowers.

But the Trump administration continues to face legal hurdles that hampered its previous student debt relief attempts, including two lawsuits filed by Republican lawmakers who allege it violates the Constitution. If these challenges go forward, cancellation of borrower loans might not begin before fall 2024 at best.

Even if the education secretary manages to resolve all legal questions regarding his initiative, it remains uncertain whether voters will support it. Republicans, who control both houses of Congress and both Senate chambers, oppose any form of loan forgiveness; it remains to be seen how popular this plan will be among young voters. More details regarding this plan should be forthcoming from the administration in coming months. At present, they’ve suspended debt collection on over four million borrowers enrolled in PSLF and the income-driven forgiveness plan, as well as over one million who qualified for borrower defense or closed school discharges – this will reduce monthly payments by up to $350 but any benefits would expire if forced by administration to withdraw plan.