"Biden's SAVE Plan: Reviving Hope for Student Loan Forgiveness"

A new repayment plan called the SAVE plan (Saving on a Valuable Education) is set to gradually provide student loan forgiveness to millions of borrowers starting this fall. The plan aims to keep monthly payments small, prevent interest from accumulating, and offer more generous forgiveness terms. Under the SAVE plan, borrowers could pay back as little as $6,121 for every $10,000 borrowed, compared to $10,956 under the old plan. The program is estimated to cost the government between $138 billion and $361 billion over the next 10 years. Eligibility for the plan includes having federally held loans, while Parent PLUS loan borrowers are not eligible. The application process is expected to be released later this summer, and borrowers can currently apply for the existing repayment plan that SAVE will replace. Legal challenges to the plan are possible, but experts believe it is less vulnerable than the recently struck down debt forgiveness plan.