The number includes borrowers who transitioned from the previous Revised-Pay-As-You-Earn plan.
The number includes borrowers who transitioned from the previous Revised-Pay-As-You-Earn plan.
More than 4 million student loan borrowers have so far enrolled in US President Joe Biden’s Saving on A Valuable Education income-driven repayment (IDR) plan, the Department of Education announced.
The number includes borrowers who transitioned from the previous Revised-Pay-As-You-Earn plan, according to a press statement.
The department also reported having received over 1.6 million IDR applications through StudentAid.gov since July 30, with nearly 1 million of those applications specifically for the SAVE plan, recognized as the most affordable IDR plan ever.
“Millions of borrowers are already benefiting from enrollment in the SAVE plan, and I’m thrilled to see so many Americans submitting applications every day so that they, too, can take advantage of the most affordable student loan repayment plan in history,” said Education Secretary Miguel Cardona.
The SAVE Plan offers significant benefits, including complete payment exemption for single borrowers earning less than approximately $15 an hour, while those earning above this threshold can save over $1,000 annually compared to other IDR plans.
Moreover, it ensures that borrowers do not see their balances grow due to unpaid interest, provided they keep up with their payments.
Streamlining access to information
The newly introduced IDR application streamlines the process by securely accessing income information from the Internal Revenue Service, eliminating the need for annual recertification.
Borrowers applying for the SAVE plan or other IDR plans will see their new payment amounts before submitting their applications. These amounts will be displayed on their servicer’s website when the first bill is sent.
Servicers will grant forbearance to borrowers needing additional processing time for their applications. After applying, borrowers can track their application status through their account dashboard on StudentAid.gov.
Reaching out to 30 million borrowers
To ensure maximum outreach, the department and its servicers have contacted nearly 30 million borrowers, encouraging them to use the new IDR application to apply for the SAVE Plan. This outreach is part of a broader campaign aimed at providing information and resources to borrowers, including a 12-month on-ramp to protect borrowers from severe consequences of missed or late payments.
The department has also initiated a nationwide outreach campaign called “SAVE on Student Debt,” in collaboration with grassroots organizations. This initiative leverages partnerships across the public, private, and nonprofit sectors to ensure borrowers are aware of available support and can fully utilize the SAVE Plan and other debt forgiveness programs.
The administration has so far approved over $117 billion in targeted relief for 3.4 million student loan borrowers.
