TEXAS — Borrowers have to pay back their student loans next month for the first time since the COVID-19 pandemic.
The White House says it has a new plan to give debt holders a break.
The Biden Administration rolled out the new plan on Tuesday — months after the Supreme Court struck down the original White House plan for debt relief.
Out of the four million borrowers who applied for the save plan, Texas had the most with more than 345,000 applicants.
With the new save plan, borrowers who make less than $15 an hour will not have to make payments, and they can save $1,000 a year.
The White House says this will be especially helpful for low-income borrowers.
"At the end of the repayment term, any remaining balance is forgiven if your income was not sufficient to fully pay off the month," said James Kvaal with the Department of Education.
Republicans on Capitol Hill say the president can't forgive student loan debt, and are calling the plan a "poorly-funded" tax payer grant system — so they do expect to put up a fight.
