..."The SAVE plan is a revised version of the previous Revised Pay As You Earn Repayment Plan (REPAYE) IDR plan. According to the White House, SAVE is designed to reduce borrowers’ monthly payments by half, allow many borrowers to make $0 monthly payments, and ensure borrowers don’t see their balances grow from unpaid interest.
The Biden administration first began working on the SAVE plan through a rulemaking process in the fall and winter of 2021, the National Association of Student Financial Aid Administrators (NASFAA) says. The administration later announced the program in conjunction with Biden’s widespread one-time student debt forgiveness plan. The Supreme Court has since struck down the debt forgiveness plan, but SAVE has not faced the same legal challenges."
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Publication Date: 8/15/2023