Biden Administration's SAVE Plan Beta Website For Student Loan Repayment To Be Launched Next Month

The Biden administration is launching a beta website for its new income-driven student loan repayment plan, the Saving on a Valuable Education (SAVE) plan, CNN reports.

Plan Details: The SAVE plan, finalized after the Supreme Court struck down President Joe Biden's student debt forgiveness initiative, is a major shift in the federal student loan system. It aims to reduce monthly loan payments for some borrowers and the total amount they pay back over the lifetime of their loans.

"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. The SAVE plan is a big part of that. It is important in this moment as borrowers are getting ready to return to repayment," a senior administration official said.

Implementation: The beta website, accessible at https://studentaid.gov/idr/, allows federal student loan borrowers to apply for the program. The enrollment process is estimated to take 10 minutes, with many sections auto-populated with government-held information, such as IRS tax returns.

"We will be able to show borrowers their exact monthly payment amount and give them the ability to choose the most affordable repayment plan for them," an official said.

The full website will be launched in August.

See Also: Biden Announces $130M Student Debt Forgiveness Plan for CollegeAmerica Students

Impact and Cost: The SAVE plan could cut some borrowers’ payments in half and cancel the remaining debt after at least 10 years of payments. However, the program’s cost to the federal government could range from $138 billion to $361 billion over 10 years. This is comparable to the estimated $400 billion cost of Biden's struck-down student loan forgiveness program.

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