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New Biden student loan repayment plan enrolls 4 million borrowers

(The Hill) – The Biden administration announced on Tuesday that 4 million student loan borrowers have been enrolled in the new Saving on a Valuable Education (SAVE) income-driven repayment (IDR) plan two weeks after it was officially launched.

The administration has touted SAVE as the “most affordable IDR plan” ever offered to borrowers, officially launching it right before interest began accruing again on student loan payments after a three-year pandemic-related pause.


Officials said most of the 4 million people SAVE enrollees are those who were automatically transferred from the Revised-Pay-As-You-Earn IDR option. 

“Millions of borrowers are already benefitting 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 application for the SAVE plan was officially launched on the Federal Student Aid site two weeks ago and takes around 10 minutes to complete. 

The Department of Education has launched a nationwide campaign called “SAVE on Student Debt” to get more borrowers to sign up for the plan. 

The plan will be enacted in two parts, with borrowers this year able to see benefits such as income exemption rising from 150 percent to 250 percent above the federal poverty guidelines. 

The administration released data showing Texas and California were the top states for the number of borrowers enrolled in the new SAVE plan. 

 “From Day One of this Administration, President Biden has focused on reducing the burden of student loan debt on working families, and we are not stopping now. Enrollment is quick and easy, and we are working relentlessly to get the word out to borrowers about how millions can reduce their monthly student loan bills and save over a thousand dollars a year by enrolling in SAVE,” Cardona said.