Biden administration unveils revised student loan plan following Supreme Court setback

The Biden administration has unveiled a new student loan debt initiative after the Supreme Court blocked its plan to wipe away $10,000 to $20,000 in debt for borrowers. The Department of Education will implement the Saving on A Valuable Education (SAVE) plan, which aims to reduce borrowers' payments and provide a transition period to help them resume repayment smoothly. The plan will cut monthly payments to zero dollars for low-income borrowers, save other borrowers at least $1,000 per year, and prevent loan balances from growing due to unpaid interest. Changes to the income-driven repayment plan will take effect this year, with full implementation scheduled for July 2024. The plan also includes forgiveness options for borrowers with smaller balances after a certain number of payments.