One New York Senator wants to make a federal student loan repayment program permanent.
On Tuesday, Kirsten Gillibrand announced the Codifying SAVE Plan Act, legislation that would codify President Biden’s income-driven repayment program, known as the Saving on a Valuable Education (SAVE) Plan, into law and protect it from being rolled back under future administrations. The SAVE Plan currently has more than 7.7 million federal student loan borrowers enrolled, and New Yorkers have had over $63 million forgiven under the plan.
“The SAVE Plan is the most affordable student loan repayment plan in history and a lifeline for millions of borrowers – allowing them to live without the burden of exorbitant monthly payments hanging over their heads,” said Senator Gillibrand. “The Codifying SAVE Plan Act would ensure that the SAVE Plan remains in place and safeguards a much-needed path to federal student loan forgiveness. I’m proud to fight so the SAVE Plan is protected for future generations, and I urge New York borrowers to visit StudentAid.Gov/SAVE to enroll in the plan today.”
President Biden’s SAVE Plan was introduced in August 2023 and has helped millions of borrowers lower their monthly payments. Under the SAVE Plan, borrowers with undergraduate loans are getting their payments reduced from 10% to 5% of their discretionary income, and those earning under 225 percent of the federal poverty line have had their monthly payments lowered to $0. The SAVE Plan has also canceled the loans of 150,000 borrowers to date. Borrowers can apply for the SAVE Plan to lower the cost of their student loan payments here.
