Every American deserves the opportunity to pursue a college education without the burden of unmanageable student loan debt. President Joe Biden and I are committed to delivering relief to student loan borrowers. Today, we are announcing the new SAVE Plan – a new repayment plan that will save the typical borrower around $1,000 a year.
Tens of millions of Americans will be eligible to save money by enrolling at www.studentaid.gov/save, lowering their monthly plans in advance of payments resuming later this fall.
The SAVE plan upholds the promise we make to those seeking a quality education. Monthly payments will be based on income, rather than their total student loan balance. In addition, as long as you make the monthly payments required under your plan, your loan balance will no longer grow because of unpaid interest – making sure that you make progress on paying down your debt.
As President Biden announced in June, we are continuing to pursue an alternative path to deliver student debt relief to as many Americans as possible as quickly as possible. Just last week, over 800,000 Americans with student debt who have been in repayment for over 20 years began to see those debts cancelled. Our Administration has already approved more than $116 billion in debt cancellation for 3.4 million Americans, and we will keep fighting. We will continue to fight to make sure Americans can access high-quality postsecondary education without taking on the burden of unmanageable student loan debt.