Late last week, the Biden administration announced its latest attempt to forgive nearly 804,000 Americans of their student loans.
The new SAVE plan is separate from a previous attempt struck down by the Supreme Court and would forgive nearly $39 billion in student loans.
The plan works by eliminating payment plans for certain borrowers who have been paying back loans for at least 20 years. According to estimates from researchers at Penn-Wharton, the plan will cost nearly $475 billion dollars over the next decade.
A statement from the White House read, in part, “we cannot bury the dreams unlocked by college under mountains of unaffordable debt. Through this process we will work swiftly and tirelessly to make that relief a reality for borrowers.”
The White House has claimed that the plan could reduce borrowers’ monthly payments as low as $0. Republicans have criticized the SAVE plan, and analysts expect that it will be challenged in court.