The website helps borrowers apply for the Saving on a Valuable Education, SAVE, Plan, a new income-driven repayment plan launched by the Biden administration. The new website is in beta testing and is expected to be fully launched in August, according to CNN."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 new SAVE Plan was announced in July, days after the Supreme Court struck down Biden's student loan plan, which would have eliminated up to $20,000 in student loan debt for millions of borrowers. Shortly after the plan was struck down by the high court, the Biden administration vowed to pursue help with student loans in different ways.
The new plan will adjust the monthly payments borrowers have to pay based on their income and household size. One thing that differentiates this plan from other plans is the pace of repaying loans, with the maximum income to qualify for zero-dollar monthly payments going from 150% of the poverty line to 225%.
The initiative comes alongside a plan by the Biden administration to relieve $39 billion by changing the calculations for when eligible plans under the Higher Education Act are forgiven.