South Dakota residents react to Biden’s new SAVE Plan

SIOUX FALLS, S.D. (Dakota News Now) -The U.S Department of Education announced Tuesday that more than 4 million student loan borrowers are enrolled in the Biden Administration’s new SAVE Plan.

Also known as the Saving on A Valuable Education income-driven repayment plan.

A single borrower who makes less than about $15 an hour will not have to make any payments, and borrowers earning above that amount would save more than $1,000 a year on their payments compared to other IDR plans.

Lisa Hager, SDSU Associate Professor of Political Science says this plan is a way to reach more of a comprise from the original plans.

“Everybody seems to kind of agree that this is a much better approach than what they tried in the past that was ultimately struck down by The Supreme Court,” said Lisa Hager, SDSU Associate Professor of Political Science.

With the new plan going more by the books, she explained the approach it would take.

“Folks that are making less than $30,000 a year would have a zero-loan payment with the idea being that currently they could focus on their more immediate needs. Then once their income rose above that $30,000 then they would be expected to pay on their student loans,” said Hager.

Emma Hughes and Kylee Sallee are students at Augustana University.

They shared how loan forgiveness programs can be beneficial.

“I definitely feel like it’s great for students to have the opportunity to get an education, and any assistance in that is always good,” said Kylee Sallee, Augustana University Student.

They believe loan forgiveness can help encourage people from different walks of life to pursue higher education.

“I’d say if people have a goal one day to become a certain educator, or nurse, or whatever, that they have that opportunity is always good,” said Emma Hughes, Augustana University Student.

With around 10,700 borrowers in South Dakota already enrolled in SAVE, Hager discussed the timing with the upcoming election.

“Right now, this is becoming a conversation about the differences between the two parties and the cost of this particular program, and I think that will help both parties as they campaign with the upcoming presidential election,” said Hager.

The Biden-Harris Administration has already approved more than $117 billion in targeted relief for 3.4 million student loan borrowers at this point.

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