Congressman Dan Goldman Applauds Introduction of Codifying Save Plan Act in Senate

Senate Companion to Goldman’s ‘Codifying SAVE Plan Act’ Introduced by Senator Jeff Merkley

‘Codifying SAVE Plan Act’ to Protect Biden Administration’s Student Loan Repayment Plan from Rollbacks by Future Presidential Administrations

Announcement Comes as White House Holds “SAVE Day of Action” in Support of SAVE Plan

Read the Bill Here

Washington, DC – Congressman Dan Goldman (NY-10) applauded the introduction of his bill, the ‘Codifying SAVE Plan Act,’ in the Senate by Senator Jeff Merkley (D-OR). The ‘Codifying SAVE Plan Act’ enshrines the Biden Administration’s historic student loan repayment plan into federal law, protecting the critical regulation from rollbacks by future presidential administrations. Senator Merkley’s bill is the Senate’s version of the ‘Codifying SAVE Plan Act,’ which Goldman introduced in the House of Representatives with Congresswoman Sara Jacobs (CA-51) in December of 2023.

First introduced in August 2023, President Biden’s Saving on a Valuable Education (SAVE) Plan cuts undergraduate borrowers’ monthly payments from 10 percent of their discretionary income to 5 percent, and monthly payments would be $0 for those earning under 225 percent of the poverty line. The SAVE Plan also ensures that the Department of Education does not charge any monthly interest not covered by a borrower’s payment while they are on the SAVE plan. More than 7.7 million borrowers are already enrolled in the SAVE Plan. To mark the success of the SAVE Plan, the White House held a “SAVE Day of Action”, bringing together stakeholders from across the country in support of the plan.

“President Biden’s SAVE Plan has impacted the lives of hundreds of thousands of student loan borrowers in New York and millions more across the United States,” Congressman Dan Goldman said. “As we approach the November 2024 elections, we must codify the SAVE Plan into law and protect it from the prospect of being rolled back under future administrations. That’s exactly why Congresswoman Jacobs and I led this charge in the House of Representatives, and why I am thrilled Senator Merkley is taking up the fight in the Senate. Alongside President Biden, we can ensure the survival of this historic student loan debt relief and deliver on the promise of the benefits and possibilities provided by higher education.”

The Codifying SAVE Plan Act:

• This bill would codify the Biden Administration’s new income-driven repayment plan, the SAVE Plan, into law, protecting this new policy from future presidential administrations.
• The SAVE Plan cuts undergraduate borrowers’ monthly payments from 10 percent of their monthly income to 5 percent, and monthly payments would be $0 for those earning under 225 percent of the poverty line.
• The SAVE Plan also ensures that the Department of Education does not charge any monthly interest not covered by a borrower’s payment while they are on the SAVE plan.

The Codifying SAVE Plan Act is supported by The Institute for College Access & Success, the National Education Association (NEA), The Education Trust, the Young Invincibles, the American Federation of Teachers, the National Urban League, and the Center for Law and Social Policy (CLASP).

The ‘Codifying SAVE Plan Act’ was one of two bills Congressman Goldman introduced in the House to address the student loan crisis last year.

Congressman Goldman’s ‘GRADUATE Act’ would enact a long overdue expansion of the Student Loan Interest Deduction for the first time since 2001, raising the deduction to $10,000 for qualifying borrowers and covering payments of the student loan principal for the first time.

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