SAVE-ing borrowers from student debt
For years the Biden-Harris administration has been working to reduce the burden of student debt, and one of its most significant and successful programs has been the Saving on a Valuable Education, or SAVE, plan. At a virtual gathering April 1, AFT and National Education Association members shared their stories about how this program has changed their lives.
SAVE addresses one of the biggest problems borrowers have: interest that continues to accrue, even when they make their monthly payments. For people like Picolya McCall, whose debt ballooned to more than $500,000, this can be devastating. But with SAVE, any accrued interest not covered by the monthly payment is canceled.
SAVE also makes income-driven repayment more generous. In the past, income-driven repayment was determined based on 10 percent of a borrower’s income; now it is 5 percent. More than 7.7 million federal student loan borrowers have already enrolled in SAVE, and 4.5 million have zero monthly payments as a result. All told, President Joe Biden has successfully canceled nearly $144 billion in student debt for 4 million Americans.
A panel of experts joined AFT members April 1 to discuss all this and share their stories of student debt relief. Here are two of their testimonies.
Picolya McCall
Adjunct professor, member of Los Angeles College Faculty Guild
My student loan journey began in 1999 when I took out my first loan for school as a student athlete. Like so many young people, I did not understand a lot of the lingo of student debt; I didn’t know what an “athletic grant through financial aid” meant. That’s what they offered me at Columbia University in New York, but my mother didn’t want me to go so far away. So I attended California State University-Dominguez Hills, where I played volleyball and ran track. I did get partial scholarships there, but I needed more funding so I took out loans for the rest.
After graduation I continued my education — with more loans — and earned a masters in marriage and family therapy. Then a professor encouraged me to enroll in a doctoral program.
At first my loan payments were $200 a month, but they went up fast. By 2023 my debt had climbed to an unbelievable $586,000, and my loan payments were $6,800 a month. Over the years, it’s been forbearance after forbearance, since I could not afford these payments. And though I didn’t realize it for a long time, when I did pay it wasn’t enough to cover the interest.
Even though I was working multiple jobs — as a licensed psychologist, an independent contractor and, for the last seven years, an adjunct professor at Los Angeles Southwest College — I could not keep up. I put off family planning and watched the stress take a toll on my relationship. My husband and I moved in with his mother to attempt to save money and buy a home, but it never happened. In 2021 our son was born; we were still unable to buy, and I was still in tremendous debt.
Around this time I learned about the AFT’s student debt clinics. Jessica Saint-Paul, a union colleague who went through the clinics herself — and got loan relief — encouraged me to apply for Public Service Loan Forgiveness, the program that cancels your debt if you are a public service worker who has made loan payments for 10 years. Dr. Saint-Paul sat with me on calls, walked me through the process and fought with representatives on the phone for hours. I am so thankful to her and to my union for helping me navigate this very complicated system.
But my journey still wasn’t over. In 2022 my daughter was born, but stress and debt continued to strain my relationship, and I separated from my husband. I heard about the SAVE program and tried to enroll. Finally, after more battles and extensive hours of phone calls and appeals, my account was properly updated. In November of 2024 I was informed that my loans would be fully discharged.
It is a blessing that, now that these loans can be discharged, I can start planning to buy a home for my family and put down roots where I have lived all of my life. With the AFT’s help, I can now give my children stability for generations to come.
Austin Davis
Special education teacher, member of Okaloosa County Education Association, Fla.
The past four years have been a relentless journey through trials and tribulations for our family. Our journey began when we lost loved ones, one after another, during the pandemic. Just when we thought we couldn’t bear any more heartache, tragedy struck again: A house fire destroyed our home and even took our beloved dachshund, Sophie.
As we tried to piece our lives back together, we did have one joyful bit of news: We were getting ready for the arrival of our first child. But even this was overshadowed by the daunting task of rebuilding our lives from the ground up. For nearly three years, we grappled with the physical, emotional and financial toll of reconstruction.
Student debt didn’t help. Between the two of us, we faced more than $1,000 a month in student loan payments. Both my wife and I, dedicated public service workers — she, an assistant state attorney, and I, a teacher specializing in special education — struggled to make ends meet as we juggled the demands of our professions alongside the responsibilities of parenthood.
Just when it seemed like the weight of our circumstances would crush us, my union told me about the SAVE plan. Our combined debt payments had been $1,696; SAVE helped us bring that overwhelming payment down to a manageable $480; together we are saving $1,216 a month, alleviating a significant source of stress and allowing us to focus on rebuilding our lives and providing for our growing family.
Thanks to the assistance provided by the SAVE plan, we’ve been able to continue our work in public service while securing child care for our daughter. It’s been a long and arduous journey, but we’ve emerged stronger, more resilient, and ever more grateful for the support that has carried us through our darkest days.
To learn more about how SAVE can help you toward debt relief, register for a virtual AFT student debt clinic, or enroll in the student debt navigator, Summer, which is free for AFT members. To read more stories like this, sign up for our e-newsletters.
