Democrats Lead Effort to Save Biden’s Student-Loan Repayment Plan

Democratic lawmakers are making a final push to rescue President Biden's crucial student-loan repayment plan, which impacts 8 million borrowers.

Introduction of New Legislation

Senator Jeff Merkley has taken the lead in introducing a bill to enhance and extend the SAVE student-loan repayment plan. Together with Senator Tim Kaine, they presented a new bill aimed at reviving the SAVE plan, initially proposed by President Biden. The primary objective of this plan is to provide borrowers with more affordable monthly payments and faster relief from debt.

Current Status of the SAVE Plan

The SAVE student-loan repayment plan has faced obstacles since July and has been under threat of elimination by GOP lawmakers through their upcoming budget bill.

Efforts to Preserve the Plan

Despite facing challenges, a group of Democratic lawmakers is not giving up on the SAVE plan. Senators Merkley and Kaine, along with other colleagues, introduced legislation to strengthen and expand the plan. The plan, initiated by President Biden through executive action in 2023, aims to offer cheaper monthly payments and quicker debt relief to 8 million borrowers. However, legal battles initiated by GOP-led lawsuits have prevented the full implementation of the plan.

Proposed Legislation: The SOAR Plan

To safeguard the SAVE plan from potential elimination, Senators Merkley and Kaine have put forward the Savings Opportunity and Affordable Repayment Plan (SOAR Plan). This new bill seeks to solidify the SAVE plan's provisions and introduce additional enhancements. The SOAR Plan includes measures such as ensuring $0 monthly payments for individuals earning below 250% of the poverty line, expanding eligibility to all student-loan borrowers, including those with parent PLUS loans and Federal Family Education Loans.

Challenges and Future Outlook

While the Democrats' efforts to preserve the SAVE plan are commendable, the current political landscape, with a Republican majority in Congress, poses significant challenges. Republican lawmakers are anticipated to introduce their budget proposal, which may involve repealing the SAVE plan and restricting access to other debt relief programs. Additionally, the Department of Education has indicated that it may not revive the SAVE plan even if it emerges victorious in court battles.

Despite the uncertainty surrounding the fate of the SAVE plan, it remains a crucial issue for millions of student-loan borrowers who are eagerly awaiting relief from their financial burdens.

—————————————————————————————————————————————
By: asheffey@businessinsider.com (Ayelet Sheffey)
Title: Democrats Lead Effort to Save Biden’s Student-Loan Repayment Plan
Sourced From: www.businessinsider.com/save-plan-student-loan-payments-blocked-democrats-introduce-new-bill-2025-4
Published Date: Tue, 01 Apr 2025 18:02:32 +0000