Since the proposal for mass cancellation of student debts was blocked by the Supreme court, Biden administration launched a new student loan repayment plan to eliminate student debts as part of his campaign.
Biden’s New Student Loan Repayment Plan
The Biden Administration announced earlier in July its new plan to launch student loan repayment plan after the initial plan for the cancellation of around $400 billion was struck down by the Supreme Court.
In a report from CBS, the new student loan repayment plan which will be called ‘Saving on a Valuable Education (SAVE) plan’ will lower the financial burden of more than 800,000 American borrowers. Texans with student debt estimated at around 64,000 will benefit from the new student loan repayment plan with a total staggering debt of $3.1 billion. Texas will have the highest number of beneficiaries among all other states.
Who Are Eligible For The New Student Loan Repayment Plan?
In a report from Texas Standard, the President of the Institute of Student Loan Advisors Betsy Mayotte, explained the different features of the new student loan repayment plan. During the interview, she was asked who will be qualified for the new plan.
Betsy Mayotte answered that many of the federal student loan borrowers will be eligible for the plan. However, there will be some exceptions. Borrowers with Parent PLUS loans will not qualify for the new student loan repayment plan.
Betsy Mayotte also mentioned that she had appreciated the administration’s initiative to help the burden of paying large sums of student debts. Vulnerable borrowers from low income families will be freed of the burden and will have much budget for other necessary bills.
The actual problem, according to Mayotte was not the staggering debt but the actual cost of higher education.