NEW YORK (TNS) — U.S. Sen. Kirsten Gillibrand declared her intent to codify the Saving on a Valuable Education (SAVE) Plan, which has already forgiven $63 million worth of student loans for New Yorkers, according to a written statement.
The SAVE Plan was presented by President Joe Biden, and has been in effect since August 2023, the written statement said. Upwards of 7.7 million people who took out federal student loans to pay for college tuition are currently registered with the plan. So far, 150,000 people have had their loans dismissed entirely because of the plan.
As stated in the written statement, “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% of the federal poverty line have had their monthly payments lowered to $0.”
Her legislation, entitled the “Codifying SAVE Plan Act,” would enshrine the SAVE Plan so that it could not be peeled back by upcoming administrations—should it pass.
The written statement said the 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).
Approximately $5.8 billion in student loan debt has been forgiven for 78,000 borrowers in the United States, many of whom work in public service careers, according to a recent announcement by the federal government, as reported by the Advance / SILive.com.
If you’re employed by a government or not-for-profit organization, you might be eligible for the PSLF program, which forgives the remaining balance on your direct loans after you’ve made the equivalent of 120 qualifying monthly payments under an accepted repayment plan, and while working full-time for an eligible employer.
In New York state, that includes 67,100 borrowers with processed PSLF discharges. Total relief nationwide with PSLF is currently at $62.5 billion for 871,000 borrowers since October 2021.
