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While the headlines this weekend focused on the Supreme Court striking down Biden's student loan forgiveness proposal, other elements of Biden's student loan proposal introduced one year ago were not affected and will continue as planned. On the same day as the ruling, the Biden administration announced the SAVE plan (Saving on a Valuable Education).

Here are the main details:

• The SAVE Plan increases the income exemption from 150% to 225% of the poverty line.
• Single borrowers who make less than $15 an hour and families making less than $67.5k will have no monthly payments to make
• All other borrowers will see their monthly payments cut in half for savings of at least $1000 a year
• The plan eliminates 100% of remaining interest for both subsidized and unsubsidized loans after a scheduled payment is made under the SAVE Plan. This means that as long as you are making monthly payments, your balance will never go up, even if you are paying less than the interest accrual. For example, if you accrued $50 in interest in July, and you make a minimum payment of $30, the $20 is erased and not added onto your balance.
• The SAVE Plan excludes spousal income for borrowers who are married and file separately. Spouses no longer have to cosign the IDR application
• Student loan balances not paid off will continue to be forgiven after 20 years under this new plan

More details about the plan can be found here:
https://studentaid.gov/announcements-events/save-plan
https://www2.ed.gov/policy/highered/reg/hearulemaking/2021/idrfactsheetfinal.pdf

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