July 30 (UPI) — The U.S. Department of Education is launching a beta website to accept student loan payment applications under the Biden administration’s new SAVE Plan on Sunday.
The Saving on a Valuable Education Plan is a replacement for the Revised Pay As You Earn Plan that increases the income exemption from 150% of the poverty line to 225%. The beta site can be found through the Federal Student Aid website.
The plan also eliminates 100% of the remaining interest for subsidized and unsubsidized loans after a payment is made and excludes spousal income.
“Part of the president’s overall commitment is to improve the student loan system and reduce the burden of student loan debt on American families,” an official from the Biden administration said, according to CNN. “The SAVE plan is a big part of that. It is important in this moment as borrowers are getting ready to return to repayment.”
President Joe Biden announced the incoming SAVE Plan after the Supreme Court struck down his student loan forgiveness program last month. The decision by the high court was a major setback to one of Biden’s big 2020 campaign promises.
“The money was literally about to go out the door and then Republican elected officials and special interests stepped in, they said ‘no’ ‘no,'” Biden said.
“These Republican officials just couldn’t bear the thought of providing relief to working-class, middle-class Americans. Republican state officials sued my administration attempting to block relief, including millions of their own constituents.”
Biden said that the new program would be grounded in a different law than his original student debt forgiveness plan. The SAVE Plan is expected to save all borrowers at least $1,000 per year according to the White House.
Some borrowers will be eligible to have their loan forgiven after 10 years of repayment.
The full SAVE Plan website is expected to launch in August.