Biden’s student loan repayment site launches today and focuses on income-related relief

The administration of President Joe Biden will today launch a beta website for its new income-based student loan repayment plan.

The program changes the federal student loan system to allow some borrowers to make lower monthly loan payments — some all the way down to $0.

That’s what a member of the administration said CNN that part of Bidens’ overall commitment is to improve the student loan system and reduce the burden of student loans on American families.

Borrowers can begin applying for the program immediately as federal student loan payments are scheduled to resume in October.

The plan — dubbed SAVE, or Saving on a Valuable Education — was finalized after the Supreme Court decision last month struck down the president’s student debt forgiveness initiative.

Students protest in front of the Supreme Court after judges ruled it was illegal to scrap the government’s program

‘The SAVE plan is an important part of that. It’s important right now as borrowers get ready to pay back,” said a member of the administration.

The registration process for the new website is meant to take about 10 minutes, and several sections should be able to automatically populate with information the government already has at its disposal, such as IRS tax returns.

“We will be able to show borrowers their exact monthly payment amount and give them the option to choose the most affordable payment plan for them,” an official said.

Unlike previous systems, borrowers only need to apply once, which the administration says will make this plan much more user-friendly.

Once an application is submitted, the approval process is expected to take several weeks.

Individuals who are already enrolled in the federal government’s REPAYE – Revised Pay As You Earn – plan will be automatically transitioned.

The official launch of the new website will take place in August – applications submitted during the beta period do not need to be resubmitted.

During the beta period, the Department of Education will monitor the performance of the site and identify any issues in real time. The site can then be interrupted at any time to make the necessary updates.

The plan, which is intended for current and future federal student loan borrowers, calculates payments based on income and family size. Some monthly payments will reportedly be as low as $0.

The income level required to qualify for $0 payments has been increased from 150 percent of the federal poverty guideline to 225 percent of it. That means an individual earning $32,805 will pay $0 and a family of four borrower who earns $67,500 will pay $0.

DOE estimates that more than 1 million borrowers will qualify for the $0 payment plan.

Some borrowers end up having their repayments cut in half when the program goes into full effect next year. Their remaining debt can then be forgiven in full after they have made at least ten years of payments.

The new plan also means that unpaid interest won’t accrue over time as a borrower makes their full monthly payments.

The final cost to the federal government of the SAVE plan is somewhere between $138 billion and $361 billion over ten years, depending on how many people sign up. Some models predict a much higher number.

By comparison, Biden’s original student loan forgiveness program, rejected by the Supreme Court, would have cost the government $400 billion.

Some predict President Joe Biden’s new student loan forgiveness plan, based on means-tested repayments, will cost taxpayers $475 billion over the next decade

The DOE has not faced successful legal challenges for similar programs it has established in the past.

Some critics say the new plan is just another way the government can make the life of the average taxpayer American more difficult by subsidizing the loans of others.

David Williams, president of the Taxpayers Protection Alliance, told DailyMail.com: “This new announcement is absurd and a slap in the face to taxpayers.

“The Biden administration is determined to recklessly spend hundreds of billions of tax dollars to bail out wealthy student loan borrowers, even after being rebuked by the nation’s highest court.

More than 80 percent of the country without student loans will be forced to subsidize the small percentage of Americans who do have loans. And again, the Biden administration is bypassing Congress.

“Whether it’s mission creep by agencies like the Federal Trade Commission with politically motivated antitrust cases, the Securities and Exchange Commission with ESG rules, or the latest Department of Education to end student loans, these actions must be stopped immediately.”