Iowa Republican senators aim to reverse a new White House plan that reduces student debt payments based on income. This plan, which enrolled 39,900 Iowans, was introduced after President Biden’s previous student loan forgiveness attempt was blocked by the Supreme Court. Both Iowa Republican Senators Chuck Grassley and Joni Ernst support a Senate resolution to overturn this proposal.
Iowa Republican Senators Seek Reversal of Biden’s Student Loan Payment Reduction Plan Set to Launch Next Month
According to Iowa Capital Dispatch, Iowa Republican senators are actively seeking to overturn a recently introduced White House proposal that aims to reduce or cuts the student debt payments based on borrowers’ income levels.
This initiative comes in response to the U.S. Supreme Court’s decision to halt President Joe Biden’s efforts to forgive a portion of student loan debt. The SAVE program aims to lower undergraduate loan payments from 10% to 5% of borrowers’ discretionary income, considering their income and family size. It offers waivers for unpaid interest and potential forgiveness of remaining balances after a set number of payments.
Currently, more than 39,900 Iowans are in the SAVE program, with over 10,000 having their debt discharged automatically. The U.S. Department of Education estimates this could save most participants about $1,000 annually. Single borrowers earning less than $15 an hour won’t need to make payments. Over 4 million student loan borrowers nationwide have joined the program, with ongoing applications at StudentAid.gov/SAVE.
Scheduled for October 1, the plan coincides with the resumption of repayment requirements following a three-year Department of Education pause. Congressional Republicans are working to block its implementation.