President Joe Biden has launched an outreach campaign to promote the recently introduced “SAVE plan”, an income-driven repayment program aimed at assisting student loan borrowers in managing their debt. With millions of Americans set to receive their first loan bill since the pandemic’s onset, the Biden administration is mobilizing efforts to encourage borrowers to enroll in the program, which caps interest accrual and reduces monthly payment amounts for many.
In a video released by the White House on Tuesday, Biden described the SAVE plan as the most affordable student loan plan ever and a significant reform to a system that had burdened borrowers for too long. The campaign involves direct communication with nearly 30 million borrowers by the Education Department and collaboration with various groups, including Civic Nation, the NAACP, and the National Urban League, to promote the program through in-person and virtual briefings, town halls, phone banks, and social media campaigns.
The Education Department confirmed the official launch of the online application for the new program on its website, StudentAid.gov. However, Biden highlighted certain features in his video, such as halving monthly payments for undergraduate borrowers, will not be implemented until next summer, after payments have resumed.
The restart of student loan payments on September 1 is expected to have economic repercussions and impact consumer spending. The Biden administration is also working on a separate initiative to cancel student debt, after the Supreme Court struck down an earlier debt relief attempt.
Congressional Republicans have expressed opposition to the new repayment plan, labeling it as a form of backdoor loan forgiveness that places a financial burden on taxpayers. Sen. Bill Cassidy plans to introduce legislation to repeal the program in September, while Rep. Virginia Foxx intends to bring a companion resolution to overturn the program in the House.
As the student loan landscape continues to evolve, borrowers and policymakers alike are navigating the complexities of debt management and relief programs.
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