Hi there,
It’s back to school time! This is an exciting (and maybe a little bit relieving) time for parents who are sending their kids back to school, but it’s also a reminder of how many folks are still paying off debt from school – even years or decades later. Keep reading for an update about the student debt crisis and how you and your family may be able to find some relief.
At the end of June, the Supreme Court struck down President Biden’s plan to cancel up to $20k in student loan debt for 43 million people. 97% of all student loan borrowers are low- and middle-income Americans and 90% of the total relief from President Biden’s plan would have gone to those making under $75,000. There’s no mincing words here – this was a terrible decision. As a millennial, many of my friends and former classmates are delayed and denied many of life’s biggest milestones – like buying a home, having kids, or starting a business – all because of student loans. Americans hold more than $1.6 trillion in student debt. It’s stopping millions of people from moving forward with their lives, it’s draining our entire economy – and we need to do something about it.
So here’s the good news: there are still ways to have some or all of your student debt canceled. President Biden announced that he’ll use the Higher Education Act to try once again to cancel student debt for millions of borrowers, and I’m working in Congress to get this done. In fact, President Biden recently announced that the Department of Education would forgive loans for 804,000 borrowers who hold a total of $39 billion(!) in student debt.
- Revised Pay As You Earn Repayment Plan (REPAYE Plan)
- Pay As You Earn Repayment Plan (PAYE Plan)
- Income-Based Repayment Plan (IBR Plan). With this plan, your payments could be as low as $0/month depending on your income!
- Income-Contingent Repayment Plan (ICR Plan)
You can figure out which of these plans is best for you by using this loan simulator.
President Biden also finalized the new Saving on A Valuable Education (SAVE) Plan to make sure that no borrower who makes less than $15 an hour will have to make any student loan payments. It will also make sure that interest doesn't pile up and increase your debt amount, and that your spouse's income can't be used to drive up your payment amount. You can sign up for the SAVE Plan here.
Student loans are holding San Diegans back from fully living their lives and contributing to our economy and community. That's why I wanted to share these plans with you – there are options available now to give you and your family more breathing room.
I'm so honored to represent you in Congress, and I’ll keep fighting to expand access to quality education and bring down the costs of higher education.
Warmly,
Sara Jacobs
