Legislation Would Protect The Biden Administration’s Income-Driven Repayment Plan From Future Presidential Administrations

April 4, 2024 - On Tuesday, U.S. Senator Kirsten Gillibrand held a virtual press conference to announce the Codifying SAVE Plan Act, legislation that would codify President Biden’s income-driven repayment program, known as the Saving on a Valuable Education (SAVE) Plan, into law and protect it from being rolled back under future administrations. The SAVE Plan currently has more than 7.7 million federal student loan borrowers enrolled, and New Yorkers have had over $63 million forgiven under the plan.

“The SAVE Plan is the most affordable student loan repayment plan in history and a lifeline for millions of borrowers — allowing them to live without the burden of exorbitant monthly payments hanging over their heads,” said Senator Gillibrand. “The Codifying SAVE Plan Act would ensure that the SAVE Plan remains in place and safeguards a much-needed path to federal student loan forgiveness. I’m proud to fight so the SAVE Plan is protected for future generations, and I urge New York borrowers to visit StudentAid.Gov/SAVE to enroll in the plan today.”

President Biden’s SAVE Plan was introduced in August 2023 and has helped millions of borrowers lower their monthly payments. Under the SAVE Plan, borrowers with undergraduate loans are getting their payments reduced from 10% to 5% of their discretionary income, and those earning under 225 percent of the federal poverty line have had their monthly payments lowered to $0. The SAVE Plan has also canceled the loans of 150,000 borrowers to date. Borrowers can apply for the SAVE Plan to lower the cost of their student loan payments here. 

Gillibrand has been a leader in taking action to fix the student loan system and support borrowers. She leads the What You Can Do for Your Country Act, which would allow borrowers to have half of their federal student loan balance forgiven after five years of public service and make sure millions of Americans are eligible for the loan forgiveness they have earned. She also successfully urged the Biden administration to strengthen our nation’s Public Service Loan Forgiveness program, which enabled hundreds of thousands of public servants to get their student debt discharged. Additionally, she has pushed to encourage our nation’s best and brightest to work in government by offering free college in exchange for public service in cyber and tech disciplines through her Cyber Service Academy scholarship program.

The Codifying SAVE Plan Act is cosponsored by Senators Jeff Merkley (D-OR), Cory Booker (D-NJ), Bob Casey (D-PA), Ron Wyden (D-OR), Debbie Stabenow (D-MI), Richard Blumenthal (D-CT), Peter Welch (D-VT), Mazie Hirono (D-HI), Tammy Duckworth (D-IL), Laphonza Butler (D-CA), Tina Smith (D-MN), Alex Padilla (D-CA), and Chris Van Hollen (D-MD).
Source:  Senator Kirsten Gillibrand