Back / Senate Republicans Fail to Overturn Biden's SAVE Program - What It Means for Student Loan Borrowers

Senate Republicans Fail to Overturn Biden's SAVE Program - What It Means for Student Loan Borrowers

Melanie Meths Abangan|PSLF|November 21, 2023
Senate Republicans Fail to Overturn Biden's SAVE Program - What It Means for Student Loan Borrowers

In recent developments on November 16th, the Senate Republicans attempted to strike down President Biden's SAVE program but failed to pass a resolution. This article will provide a comprehensive update on the news, the implications for American student loan borrowers, and the ingenious alternative implemented by the Biden administration.

The SAVE program, implemented by the Biden administration, brings crucial changes to the student loan landscape. It includes adjustments to the discretionary income formula and an increase in the poverty line, particularly benefiting families earning under $67,000. This results in reduced or zero payments for eligible borrowers, offering relief to millions of Americans.

Now, let's discuss the political landscape surrounding this initiative and its implications for student loan borrowers and people who are trying to get mortgages.

1. Democrats' Veto and Program's Continued Existence

The Senate Republicans' effort faced a pivotal moment with the Democrats' veto, ensuring the preservation of the SAVE program. Despite political divides, the Biden administration's commitment to the program underscores its significance in providing financial assistance to student loan borrowers. This means, SAVE will continue to progress and help millions of borrowers get access to reduced or even possibly $0 payments towards their student loans.

2. Impact of $0 Payments on Mortgage Qualification

Now that borrowers can have access to $0, the prospect of this payment amount under the SAVE program raises considerations for mortgage qualification. Notably, only Fannie Mae accepts $0 payments, potentially posing challenges for those seeking mortgages with other lenders under different programs like FHA, Freddie Mac, and others. This means, that if you have $0 payments on your student loans, you can only use the Fannie Mae plan for a mortgage to accept that amount when calculating for your Debt-to-Income ratio. This would have a negative impact if a borrower cannot be qualified for such a mortgage plan. This emphasizes the importance of understanding the lender's policies regarding student loan payments.

Lenders and loan officers play a pivotal role in helping borrowers navigate the evolving landscape. Signing up for assistance programs and gaining insights into converting portfolio loans into conventional loans can enhance their ability to underwrite mortgages effectively. This ensures borrowers can access the right mortgage products aligned with their financial situation. LoanSense can additionally help you navigate into your student loans to gain more product qualifications when trying to close.

3. Solutions for Mortgage Qualification Challenges

Borrowers facing hurdles in mortgage qualification due to the SAVE program can take proactive steps. If you're trying to get a mortgage and you got enrolled automatically into SAVE and you have a $0 payment and your lender says you are not Fannie qualified, you are Freddie Mac or FHA qualified, then they cannot accept the $0 payment. They're going to use 0.5% of your balance as your payment towards you student loans when calculating for your debt-to-income ratio. So if you have a $60,000 student loans, they're going to use $600.

Navigating this situation is possible, and LoanSense has successfully assisted numerous individuals facing similar challenges. If you find yourself in need of support, we can guide you through the process of filing corrections and recertifying your paperwork. Our expertise extends to helping you understand the implications of these actions. Additionally, we offer assistance to borrowers in obtaining the necessary documentation and selecting the right plan, ensuring that you can accurately underwrite their mortgage product. With the increasing number of individuals qualifying for zero payments, potentially impacting their eligibility for preferred mortgage products, our services become even more valuable. Moreover, we specialize in converting portfolio loans into conventional loans, aligning with the guidelines of Freddie Mac, Fannie Mae, and FHA.

3. Get more count towards loan forgiveness

Keep in mind that the window to access the income-driven waiver program, which contributes significantly to loan forgiveness, closes on December 31st. It is paramount to take action before this crucial deadline, ensuring eligibility for the income-driven waiver program and unlocking additional pathways to loan forgiveness. Providing support to borrowers during this period is essential, underscoring the urgency of adapting to these changes promptly.

For certain borrowers, opting for Loan Consolidation may prove advantageous, particularly those working in non-profit organizations and government agencies. However, it's crucial to recognize that consolidation may not be the optimal choice for everyone. Seeking professional guidance becomes imperative, especially when dealing with loans such as FFEL and Perkins Loans that do not qualify for Public Service Loan Forgiveness.


In conclusion, the Senate Republicans' unsuccessful attempt to overturn the SAVE program maintains a lifeline for student loan borrowers. Understanding the program's intricacies, navigating mortgage qualification challenges, and leveraging available assistance are essential steps in this evolving financial landscape. As the deadline approaches, both borrowers and lenders are urged to stay informed and take proactive measures to ensure financial well-being.

If you need personalized assistance or have questions about your specific situation, our experts at LoanSense are here to help. Visit our website at to learn more about our services and get in touch. You may also check out our YouTube Channel for more informative discussions and topics related to student loan debt.

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