Dear Friends,
Nearly four million Californians are working to pay back student loans, with an average balance of almost $39,000. Regardless of race, income, or nationality, everyone should have access to higher education without socioeconomic barriers limiting their ability to seek education. Since assuming the presidency, President Biden has been diligent in striving to alleviate the burden of student loans for all Americans.
The Department of Education has since implemented the Saving on a Valuable Education (SAVE) Plan to help student borrowers reduce their debt.
- The SAVE Plan is an Income-Driven Repayment plan, so it bases your monthly payment on your income and family size.
- Starting in February 2024, the SAVE Plan will give borrowers who originally borrowed $12,000 or less forgiveness after as few as 10 years.
- The SAVE Plan has an interest benefit: If you make your full monthly payment, but it is not enough to cover the accrued monthly interest, the government covers the rest of the interest that accrued that month. This means that the SAVE Plan prevents your balance from growing due to unpaid interest.
- More elements of SAVE will be proposed in Summer 2024 that will lower payments and support borrowers.
In this E-Alert, you will find information about applying for the SAVE plan, as well as recordings to help you navigate the process. As you delve into this information, please feel free to contact my District Office for any questions and support as we are here to help.
Yours in Service,
Mia Bonta
Assemblymember, 18th District
In this newsletter, you'll find the following information:
Assemblymember Mia Bonta & staff are committed to keeping AD-18 residents fully engaged and informed. Please send this newsletter to a friend and subscribe!
Stay connected with our office at (510) 286-1670, Email Me, or follow us on social media.
Section 1: The SAVE Plan for Qualifying Students
The SAVE plan is an income-driven loan repayment plan. Loans eligible for this plan include direct subsidized loans, direct unsubsidized loans, direct PLUS loans, and direct consolidation loans. Once you apply to this plan, you will learn about your estimated repayment options for these loans.
To learn more about applying, visit the new Income-Driven Repayment Plan Request on the Federal Student Aid website below.
Income-Driven Repayment Plan Request
Section 2: Watch the SAVE Plan Recorded Webinar
On March 27, 2024, the National Education Association hosted a free half-hour webinar discussing the SAVE Plan and what it means for you.