UW–Madison’s Hillman breaks down Biden’s SAVE plan on WPR


UW–Madison’s Nick Hillman, a professor with the School of Education’s Department of Educational Leadership and Policy Analysis, shared his expertise with Wisconsin Public Radio (WPR) recently in its segment, “How Biden’s SAVE plan fits could affect student loans.”

Hillman

Hillman is an expert in how finance, policy, and geography shape educational opportunities, and is the director of the university’s Student Success Through Applied Research (SSTAR) Lab.

According to WPR, the Saving on Valuable Education (SAVE) plan is President Joe Biden’s counter-solution to his original student loan relief plan, which was overturned by the U.S. Supreme Court. It is being called the “most generous” repayment program of its kind.”

Hillman begins by explaining what the SAVE plan is.

“It is an income-driven repayment plan, and what that means is that monthly student loan payments will be connected to the amount of income that somebody who has loans earns…it reduces your monthly payment, (and) allows for some cancellation that comes sooner than some of the older plans,” he says.

According to Hillman, people currently participating in loan forgiveness plans will be grandfathered into the SAVE plan. Others, as long as they have undergraduate or graduate direct, federal loans, will have to apply.

In response to WPR callers, Hillman also shares expertise on the “unfairness” of plans like SAVE, that reduce or eliminate student loan repayment.

He states: “Our student loan system was basically designed in the 1960s, 1970s — not for the issues that we are facing today.”

“There are definitely politics here,” Hillman continues. “It’s not going to end with the Supreme Court decision, it’s not going to end with this election cycle.”

Listen to the full WPR segment to learn more from Hillman about Biden’s SAVE plan.

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