White House releases new guidelines for student repayment program, students are skeptical if it actually goes through
TUCSON, Ariz. (13 News) - The Supreme Court struck down President Biden’s student loan forgiveness plan, but that’s not stopping the White House from trying to implement another approach to student loan forgiveness.
After the Supreme Court ruled against Biden’s original student loan forgiveness program, some students across the country were disappointed in the court’s Decision.
Students from the University of Arizona say it makes access to higher education more challenging.
“There’s a lot of people that go to college for the opportunity,” said Oz Stavreff, a student at the U of A. “But now they’re stuck for 10, 20, 30 years paying that stuff off, it’s going to be impossible to achieve what they came to college for.”
Other students, though, say the court made the right decision.
“I think it is an executive overreach and I think that’s been a theme in American politics for a while now,” said Vivienne Coe. “[On] the same token though, I agree with what Biden was doing.”
Saving on a Valuable Education (SAVE) plan is the name of the White House’s new program for borrowers.
However, long before the court’s decision, the Biden-Harris Administration had introduced the SAVE plan. Referred to as the most affordable loan repayment plan, the program seeks to cut loan repayments in half so borrowers can set aside more funds for living expenses like food and rent.
While the regulations for the SAVE plan are expected to be fully implemented by July 2024, lawmakers are already carrying out some policies before the end of the year.
People making just over 32 thousand dollars won’t have to pay. And those who are married will no longer need to include their spouse’s income information.
“I like the fact he’s finding accessible routes in order to help these students at least find time to save up money for them to be able to pay it,” said U of A student Mariana Soto.
Other things to keep in mind: borrowers with an original balance of 12 thousand dollars or less will have their loan forgiven after 120 payments have been made.
Credit will be given towards forgiveness for anyone treated for cancer, has overcome a natural disaster or other factors to eliminate any stressful financial burden.
Art Young, the executive director of the Office of scholarships and financial aid shared a statement on what the university is doing to help navigate students through the policies, saying, “The University is conducting outreach to our graduates and former students to help connect them to the resources they need to make informed decisions about repayment.”
“We are encouraging borrowers to contact their loan servicers as soon as possible to ensure their contact information is current and explore their options well before October when monthly payments are slated to resume.”
Given the outcome of the original forgiveness program, however, some students are cautious if the SAVE plan will actually go through, and others are hopeful.
“I mean, it’s an okay alternative, but it is a little bit rough when you’re expecting something and not getting it back,” said Catalina Aranda.
“I’m very optimistic. I don’t see what hangups would happen. I feel like if the previous thing didn’t work, this is going to fly,” Vivienne Coe said.
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