Kansas student loan borrowers sign up for Biden SAVE plan

TOPEKA (KSNT) – Federal education officials say thousands of student loan borrowers in Kansas are joining more than four million people across the country by enrolling in a cost-saving plan pushed by the Biden-Harris Administration.

Regional Communications Director Haris Talwar with the White House said in a press release that the U.S. Department of Education has released new information regarding how many people have signed up for the Saving on a Valuable Education (SAVE) program. This income-driven repayment (IDR) plan, has more than four million people enrolled in it nationwide with 35,000 in Kansas signing up for it.

“Millions of borrowers are already benefitting from enrollment in the SAVE plan, and I’m thrilled to see so many Americans submitting applications every day so that they, too, can take advantage of the most affordable student loan repayment plan in history,” U.S. Secretary of Education Miguel Cardona said.

Talwar said the SAVE plan gives borrowers making less than $15 an hour breathing room on their payments by dropping the cost of payments down to $0. Borrowers who make above $15 are estimated to save more than $1,000 per year on their payments through the SAVE plan. SAVE will also ensure that borrowers will never see their balance grow because of unpaid interest as long as they keep up with their payments.

“The new application is easy and quick. Most people only need about 10 minutes to complete it,” Federal Student Aid Chief Operating Officer Richard Cordray said. “Borrowers can get their monthly payment calculated in real time, and they can choose to have their IDR application recertified automatically each year.”

Borrowers applying for SAVE or other IDR plans will see their new payment amount before submitting their application as it will be displayed on their servicer’s website when their first bill is sent. Many borrowers who apply for the SAVE plan can expect their next payment to reflect their SAVE amount. Borrowers who need more time to process their application will be placed in forbearance by servicers.

Talwar said borrowers can check the status of their application by visiting their account dashboard by clicking here after they’ve applied. Loan Simulator can also be used by borrowers to calculate student loan payments across other repayment plans and choose a loan repayment option that best meets their needs.

The SAVE plan was officially launched by the Biden-Harris administration in late August. The release of the SAVE plan came just weeks before interest was set to start accruing on student loans for the first time in more than three years. For more information on the SAVE plan and to see if you meet the qualifications, click here.