Published: April 2024

Support for the Codifying SAVE Plan Act, benefiting student loan borrowers

Consumer Action endorsed Senator Jeff Merkley (D-OR) and congressional allies’ Codifying SAVE Plan Act, proposed legislation that would codify President Biden’s new income-driven repayment program into law.

Consumer Action was one of almost two dozen advocacy organizations to endorse Senator Jeff Merkley (D-OR) and congressional allies’ Codifying SAVE Plan Act. The proposed legislation would codify President Biden’s new income-driven repayment program—known as the SAVE Plan—into law. The SAVE Plan was established in response to a student debt crisis in which millions of students are saddled with a level of debt that has a significant negative impact on the economy, as these students are unable to afford to buy a home or car, spend on consumer goods and services, or start a business. First introduced in August 2023, the Saving on a Valuable Education (SAVE) Plan cuts undergraduate borrowers’ monthly payments from 10% of their discretionary income to 5%, and sets monthly payments at $0 for those earning under 225% of the poverty line. With more than 7.7 million borrowers already enrolled in the SAVE Plan, it is crucial that the program be codified into law to protect it from the prospect of being rolled back by future administrations.

Lead Organization

Senator Jeff Merkley

More Information

Read the announcement here.

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