The White House on Sunday launched a test website that it hopes can become the platform for a second shot at a student debt forgiveness plan — just one month after the Supreme Court struck down its initial plan.
The Saving on a Valuable Education (SAVE) Plan website began taking applications in preparation for a full launch in the coming weeks, the Department of Education announced. The program will forgive monthly payments for low-income borrowers, and other eligible applicants will be able to have at least $1,000 per year on payments forgiven.
The department did not say how much the new program might cost or how many people it might cover. Still, the agency touted the program as a way to ensure debtors avoid unpaid interest in future years.
“The SAVE Plan is the most affordable student loan repayment plan ever created,” a Department of Education spokesperson said.
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The SAVE Plan was first reported Sunday by CNN and later confirmed by Fox News Digital.
The Biden administration’s new plan comes one month after the Supreme Court struck down its initial student loan forgiveness plan, which it deemed must be passed by Congress. Six Republican states argued in the case that the plan was unlawful and would hurt their tax revenue.
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The Department of Education said it is “confident” its new plan will be successfully enacted.
“We are confident in our legal authority,” a spokesperson told Fox News Digital. “Congress gave the Department of Education the authority to define the terms of income-driven repayment plans.”
The plan that was struck down by the Supreme Court would have canceled up to $10,000 in federal loans for borrowers making less than $125,000 a year and couples making less than $250,000. Those who used Pell Grants in college would have been able to have up to $20,000 forgiven. In total, the plan would have forgiven $441 billion in outstanding student debt.
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The beta launch website for the SAVE Plan will not require a reapplication once the program is fully launched, the Biden administration said. Applications should take only 10 minutes or less, it claimed. The testing period will allow the administration to monitor the site performance and refine the process if needed.
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“This new plan is a critical step in delivering on President Biden’s commitment to supporting students and borrowers, and helping more American families get out from under the burden of student loan debt,” a Department of Education spokesperson said. “No President has fought harder for student borrowers, and the SAVE plan will give millions of borrowers breathing room on their monthly bills now and for years to come.”