This letter from organizations representing students, workers, civil rights organizations, consumers, low-income borrowers, and researchers sets forth strong opposition to efforts to use the Congressional Review Act (CRA) to overturn the Biden-Harris Administration’s new rule implementing the Saving on a Valuable Education (SAVE) Plan for federal student loan borrowers.
Over 4 million Americans across the country have already enrolled in the SAVE plan and are relying on it to be able to afford their student loan payments. The SAVE Plan offers many borrowers the most affordable payment option on their federal student loans. It targets benefits to low- and moderate-income borrowers by lowering their monthly loan payments and protecting more of their income — up to 225% of the federal poverty level — to enable them to better cover basic needs such as food, housing, and child care.
The SAVE Plan also ensures that borrowers never see their balance grow as long as they keep up with their required payments. It also offers a clearer and faster pathway to debt relief for borrowers with smaller debts; the White House estimates this change will mean that 85% of community college borrowers will be debt-free within 10 years.