(AURN News) — After a three-year hiatus prompted by the pandemic, student loan payments resumed on Sunday, leaving many Americans bewildered about the state of their student loan obligations.
The Biden administration’s efforts to enact large, widespread student loan forgiveness were met with a setback in June when the Supreme Court rejected the program in a 6-3 decision. The President’s proposal aimed to alleviate the burden of nearly $400 billion in student loans, a plan that, according to the White House, would have directed 90 percent of its benefits to those earning less than $75,000 a year.
The opposition to widespread loan forgiveness has been fervently voiced by Republicans in Congress and Republican Governors across the country, arguing that such forgiveness would constitute an unfair use of American tax dollars.
In the midst of an economy grappling with inflation, job losses, and slowed growth, the end of the student loan repayment pause has raised concerns about its overall potential impact on the already fragile economy. To address these concerns, a new initiative called Saving on a Valuable Education (SAVE) was unveiled in August, introducing an income and family size-based repayment plan.
Under SAVE, a certain number of years of payments can lead to loan forgiveness. The White House estimates that approximately 20 million borrowers stand to benefit from this program.
You can sign up at StudentAid.gov/SAVE.
Click play to listen to the AURN News report from Jamie Jackson:
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