The SAVE or Saving on a Valuable Education plan was finalized after the Supreme Court struck down President Joe Bidens student debt forgiveness initiative in June . It marks a significant change to the federal student loan system that could lower monthly loan payments for some borrowers and reduce the amount they pay back over the lifetime of their loans . The enrollment process is estimated to take minutes and many sections can be automatically populated with information the government has on hand including tax returns from the IRS . Some borrowers could have their payments cut in half when the program is in full effect next year and see their remaining debt canceled after making at least years of payments . The full website launch will occur in August and applications submitted during the beta period will not need to be resubmitted . Borrowers will only need to apply one time not yearly as past systems require which officials said would make this plan much easier to use . The income threshold to qualify for payments has been increased from to of federal poverty guidelines which translates to an annual income of for a single borrower or for a family of four . Some monthly payments will be as small as $100,000 . The new plan does come at a cost to the Federal government but estimates have varied depending on how many borrowers will qualify for the new plan but they range from billion to billion over years . The Education Department estimates this means more than million additional borrowers would qualify for . But the new program does come from the Education Department estimate of the programs expense have range from the new plans. By comparison Bidens Student Loan Experts say they range between the Education Dept. Officials say they are expected to be around $30,000 to $20,000. The new program was expected to cost the federal government. By contrast BidensStudent Loan
Biden administration launches new income-driven student debt repayment plan . Biden administration launched new income
