The Department of Education has started the process of enrolling student loan borrowers into its Saving on a Valuable Education (SAVE) plan, just weeks after the U.S. Supreme Court quashed the Biden administration’s attempt to forgive billions of dollars in student loans.
SAVE is an Income-Driven Repayment (IDR) plan.
“A beta version of the updated IDR application is now available and includes the option to enroll in the new SAVE Plan—the most affordable repayment plan yet,” says the Student Aid website. “We’re accepting applications now to help us refine our processes ahead of the official launch. If you submit an IDR application now, it will be processed and will not need to be resubmitted.”
“The application may be available on and off during this beta testing period. If the application is not available, try again later. You will receive an email confirmation after you have applied.”
On June 30, the U.S. Supreme Court voted in a 6–3 decision to strike down the Biden administration’s controversial student loan forgiveness plan, which would have canceled as much as $20,000 for around 40 million borrowers, resulting in a massive $800 billion tax-payer commitment.
Following the SCOTUS ruling, Mr. Biden promised he would pursue a “new way” to circumvent the decision. On the same day as the ruling, the Department of Education (DOE) announced the SAVE plan.
At present, the DOE offers four Income-Driven Repayment plans for students to pay off their debts—Revised Pay As You Earn Repayment Plan (REPAYE Plan), Pay As You Earn Repayment Plan (PAYE Plan), Income-Based Repayment Plan (IBR Plan), and Income-Contingent Repayment Plan (ICR Plan).
The SAVE plan is intended to replace the REPAYE plan, which is one of the most widely used of the four existing plans. The remaining three will be phased out or limited by the DOE.
Borrowers who are already enrolled in the REPAYE plan or recently applied for it will automatically be transferred to the SAVE plan. There is no need to reapply for such borrowers.
Discrimination to Pay off for some & NOT for ALL who could not afford college like me + those who had to Pay !!
College should already be FREE like Grade School to students (Already paid for by taxpayers )
If your choice to go to college should be free then so should my house. So while you are advocating for tax money to spent on peoples choices why don’t you put your money where your mouth is and pay off my mortgage? My mortgage cost is less than 4 years at a major university.
Okay, commie.
Pay your own bills. Going to an expensive university to party for 4 years and graduate with a worthless degree was your choice not mine. I shouldn’t have to pay for your mistakes.
It presents the same type of costs to the taxpayers and should be struck down for the circumvention it really is!
Here’s a Win-Win.
1) College is expensive and many degrees don’t lead to a self-sustaining career.
2) Military recruitment is down, even though VA has beneficial college education benefits.
3) Many of group 1) above are able to borrow huge sums from Uncle Sam far beyond what they could borrow for a car or house, even with sketchy degree in mind. IOW, rotten loan risks except to Uncle Sam.
4) Solution: No more Uncle Sam loans for college but full tuition, room & board for ex-military members on a year for served year basis, with 2 year minimum hitch. Serve 4 = Bachelors; 6 = Masters; 8 = PhD. Could be taking classes while on active duty like now.
But wait…There’s more!! Just like Medicaid controls reimbursals for health meds and treatments, VA will determine Federal tuition, room, board reimbursal rate. Colleges getting Federal money will have to post their minimum SAT and or ACT score for admission. A lottery of all applicants meeting that score will determine admission. Service members admitted will have Uncle Sam pay those rates on their behalf.
Colleges can continue to charge ‘retail prices’ to other students who won’t have Uncle Sam backed loans, and after admitting all minimum score applicants, they can admit anyone they please.
To sum: Increased enlistment incentive to spur recruitment, elimination of Uncle Sam backed education loans entirely, pressure on colleges to reduce costs, elimination of race and gender as admission factors, sharper overall military prospects, more mature college enrollees, more grads without big debt.