Nearly four million Californians [1] are working to pay back student loans, with an average balance of almost $39,000 [2]. “Regardless of race, income, or nationality, everyone should have access to higher education without socioeconomic barriers limiting their ability to seek education,” District 18 Assemblymember Mia Bonta [3] stated in a letter to constituents.
[4]President Joe Biden’s administration has been working to alleviate the burden of student loans for all Americans. The Department of Education has implemented the SAVE Plan [5]—Saving on a Valuable Education—to help student borrowers reduce their debt. Basic facts about the plan:
- The SAVE Plan is an Income-Driven Repayment Plan that bases monthly payments on income and family size.
- Starting in February 2024, the SAVE Plan offers those who originally borrowed $12,000 or less forgiveness after as few as 10 years [6].
- The SAVE Plan prevents your loan balance from growing due to unpaid interest. 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 during that month
More elements of the SAVE Plan, which will lower payments and support borrowers, will be proposed in Summer 2024 [7]. Those who already are on the REPAYE Plan will automatically get the benefits of the new SAVE Plan.
Assemblymember Bonta’s online newsletter offers further information about applying for the SAVE plan, as well as a webinar to help navigate the process:
- Read more info on the SAVE Plan [9] for Qualifying Students.
- Watch the SAVE Plan Webinar [10].
“Please feel free to contact my District Office for any questions and support, as we are here to help,” Bonta said. Visit her Oakland office at 1515 Clay St., call 510-286-1670, or use the online contact form [11] to send an email.