NEWS GLEAMS | Federal Income-Based Student Loan Repayment Program Now Available; Back2School Bash Returns

A roundup of news and announcements we don't want to get lost in the fast-churning news cycle!

by Vee Hua 華婷婷

Federal Income-Based Student Loan Repayment Program Now Available

The Biden Administration has begun to roll out its new Saving on a Valuable Education (SAVE) program, which is an "income-driven repayment (IDR) plan" that bases monthly student loan repayment amounts based on each borrower's income and family size rather than their remaining loan balance. It comes following the Supreme Court's June 2023 decision to strike down the Biden Administration's student loan forgiveness program, which would have provided $400 billion in debt relief from student loans, and it is likely to benefit low- and middle-income families.

According to the White House, this IDR plan differs from previous IDR plans in the following ways:

• Single borrowers who make about $15 an hour may see monthly loan payments of $0. "A borrower's monthly payment amount is based on their discretionary income—defined under the SAVE plan as the difference between their adjusted gross income (AGI) and 225% of the U.S. Department of Health and Human Services Poverty Guideline amount for their family size," writes the White House. "This means a single borrower who makes about $15 an hour will not have to make any monthly payments. Borrowers earning above that amount would save around $1,000 a year on their payments compared to other IDR plans. The Department of Education estimates that more than 1 million additional low-income borrowers will qualify for a $0 payment. This will allow them to focus on food, rent, and other basic needs instead of loan payments."
• Certain undergraduate loan payments will be cut in half. Some borrowers may see their payments reduced from 10% to 5% of their discretionary income. Others with undergraduate and graduate loans may pay a weighted average based on the original principal balance of their loans, at a rate between 5% and 10% of their income.
• Low-balance borrowers may see early loan forgiveness. IDR plans require borrowers to repay their loans for at least 20 to 25 years, regardless of the number of terms they went to school. Following that time period, the SAVE plan may offer forgiveness for borrowers following 120 payments; the amount and timeline for forgiveness may depend on the amount of each student's remaining balance.
• Monthly interest will no longer be charged by those who make their monthly payments. As long as borrowers remain current with their monthly recovered payments, the Department of Education will no longer charge interest, so that borrowers will not see their loans grow due to unpaid interest.

Potential borrowers can sign up, learn more about eligible or ineligible loans, or see the details of the program by visiting studentaid.gov/SAVE.

D'Vonne and KeAnna Pickett Scholarship to Support Youth Football and Cheer Program

This evening, King County Councilmembers Girmay Zahilay and Rod Dembowski, along with Seattle Seahawks officials, will honor the Central District Panthers youth football and cheer program through the creation of the D'Vonne and KeAnna Pickett scholarship. They will provide $100,000 in grant funding in honor of the former coach D'Vonne Pickett Jr., who was shot and killed in October 2022, and his wife. D'Vonne was known as a community builder, and the two had opened a shipping and mailing storefront in the Central District in 2018.

The funds were secured by Zahilay and Dembowski through King County's Get Active, Stay Active grant program, which provides financial support for organizations that provide youth and amateur sports and fitness programming.

Attend the event at 6:30 p.m. on Wednesday, Aug. 23, at the south side of the baseball field at Judkins Park (2150 S. Norman St.).

Rainier Beach's Back2School Bash Returns

For over 20 years, the Rainier Beach Action Coalition (RBAC) has organized its Back2School Bash, a fundraising event that addresses socioeconomic factors that affect a student's ability to participate fully in school. The event provides students and families with backpacks, school supplies, food, and information about relevant community resources. Its goal this year is to raise $35,000 toward supporting youth, families, and the event itself.

Donations can also be dropped at the RBAC office prior to the event, between 10 a.m. and 4 p.m. RBAC is seeking backpacks, binders, pens, calculators, art supplies, folders, pencil pouches, rulers, scissors, flash drives, and much more.

Similar to last year, the Back2School Bash has partnered with Fathers and Sons Together (FAST), an organization that promotes involvement of fathers in their children's lives, to bring the Barbershop Chat event. According to previous reporting by the Emerald, the Barbershop Chat will offer participants free haircuts, and "While receiving their haircuts, participants can listen to and engage in conversations about anti-violence, building family relationships, and prevention not intervention."

This year's Back2School Bash takes place Aug. 26 from 12 to 4 p.m. at the Rainier Beach Plaza (8824 Rainier Ave. S.).

📸 Featured Image: Photo by zimmytws/Shutterstock.com.

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