Home
News
- 1 The SAVE Plan of Biden is easing student debts which reportedly can release funds for crypto.
- 2 In recent times, the crypto industry has been experiencing a bearish trend.
The newly introduced plan of Biden aims to ease student debt, potentially releasing funds for long-term investments such as crypto. On August 22, 2023, Tuesday, U.S. President Joe Biden brought a new plan named the “SAVE Plan.”
This new plan facilitates student debt while also encouraging saving in a step towards controlling the debt crisis in the U.S. This plan could benefit low/middle-income borrowers, putting more money back into savings.
Crypto Market Update
According to Coin360, a cryptocurrency and crypto exchange live data collector, most of the cryptocurrencies have traded in the red zone. On the other hand, the above chart shows the bearish market trend in the crypto industry that is still going on. Due to this, two of the most traded cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) still show over 13% price decline in a month.
With the SAVE Plan, the U.S. government is trying to deal with the present debt crisis in the country. Although the condition of U.S. savings is quite critical as household savings dropped by $100B/month on average since the beginning of 2022. It can be said that savings are quite a luxury in the U.S., therefore, the plan could pave the way for more investment into riskier assets such as crypto.
On the other hand, the younger generation with potentially more savings could be profitable for markets in almost extreme need of fresh capital inflows. However, the recently launched student loan repayment plan by the U.S. President describes it as the “most affordable” choice for reducing student debts now.
SAVE Student Loan Update
The “Saving on A Valuable Education” or SAVE plan aims to give student loan relief. It also is noted that this new initiative could cut borrowers’ payments in half and trim some balances to zero. According to reports, the enrollment started yesterday whereas it will be an automated process for those under the previous REPAYE plan.
Additionally, Neera Tanden, White House Domestic Policy Advisor, shares her thoughts on the new income-driven student debt repayment plan. She said, “this plan is a game changer for millions of Americans, many of whom are putting off having children, buying their first home or even starting a business because they can’t get out from under their student loans.”
Notably in this new plan, the monthly payments are based on income and family size, not the total loan balance. It can be understood simply as the students with undergraduate loans only, their payments will now “be capped at 5% of their discretionary income.”
It must be noted that no interest will be collected beyond the income-based payment. Also, loans under $12,000 will be forgiven after 10 years of payments. As per the government’s claims, low and middle-income borrowers will benefit most. It could also put more money back into savings accounts.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
