(Des Moines) Nearly 55 thousand Iowa student loan borrowers have signed up for a new income-driven repayment plan that President Joe Biden’s administration rolled out this year.
The White House says 54,600 borrowers have enrolled in the Saving on a Valuable Education (SAVE) Plan after the U.S. Supreme Court blocked the Biden administration’s efforts to forgive up to 20 thousand dollars in student loan debt for low and medium-income borrowers. The U.S. Department of Education officials say SAVE will help make college more attainable for upcoming students.
According to the Iowa Department of Education, the plan caps payments at five percent of a student loan above 225 percent of the federal poverty level. Borrowers making less than $32,800 will have a zero-dollar monthly payment.
According to data from the Education Initiative, there are a total of 433,000 student loan borrowers in Iowa who have an average of $30,800 in debt.
