Biden's SAVE plan, introduced in August 2023, offers potential relief to millions of student loan borrowers, reducing some monthly payments to $0 and preventing interest from accumulating. The plan aims to benefit low- and middle-income earners, community college students, and public service workers, with early forgiveness for those with low balances. However, opponents argue it could cost taxpayers up to $559 billion and incentivize colleges to raise tuition costs, prompting some House Republicans to seek its overturning through a Congressional Review Act (CRA) resolution.

President Joe Biden is pursuing an alternative plan for student loan forgiveness based on the Higher Education Act (HEA) after the Supreme Court rejected his initial proposal that was based on the Higher Education Relief Opportunities for Students (HEROES) Act. The HEA grants the US Education Department the authority to waive or release loans, but the plan is expected to face legal challenges and its scope and effectiveness remain uncertain.

While some upper-middle-class folks will receive student debt relief through President Biden’s student loan forgiveness plan, 75% of the relief will go toward middle-class and lower-income borrowers.

On Aug 30, 2022, President Biden released his plan to relieve student loans for millions of borrowers, providing up to $20,000 in relief per individual.

Here’s what you need to know: