More than 4 million borrowers are now enrolled in a new income-driven student loan repayment plan that could save them over a $1,000 a year, the Biden administration said Tuesday.

The Saving on a Valuable Education, or SAVE, plan does not require borrowers who earn less than $15 an hour to make payments, and those who earn more will save more than $1,000 a year on their payments compared to other income-driven plans, officials said. Borrowers also are assured their balances won’t grow from unpaid interest.

Some of the 4 million enrolled include borrowers who were transitioned from a previous plan, known as the Revised-Pay-As-You-Earn, or REPAYE, plan. Nearly 1 million other people have applied for the SAVE plan since July 30, officials said.

“We are excited to see this great level of interest in SAVE and in the income-driven repayment plan specifically,” Education Undersecretary James Kvaal told reporters Tuesday. “We know that student loan bills are challenging for a lot of families, and we want to do everything we can to make sure borrowers take advantage of the benefits that come with a federal student loan.”

In June, the Supreme Court struck down President Joe Biden’s plan that would have canceled about $400 billion in student loan debt.

For the first time since the COVID-19 pandemic began more than three years ago, loan payments will be required again in October, and interest resumed accruing last week.

“Our top priority is to support borrowers as they prepare to return to payment,” said Jason Miller, deputy director for management at the Office of Management and Budget.”

In response to the Supreme Court decision, the Biden administration has taken a number of steps aimed at providing relief to borrowers.

In addition to the SAVE plan, the Education Department is pursuing a rule that would create an alternative path to debt relief for many working and middle-class borrowers by expanding the education secretary’s authority to modify, waive or compromise debt. The department has also instituted a one-year on-ramp to resuming payments that will protect borrowers from the harshest consequences of missed, partial or late payments.

Additionally, the Biden administration has discharged $39 billion in debt for more than 800,000 borrowers to correct what it calls historical inaccuracies regarding credit earned toward forgiveness, another $45.7 billion for 662,000 public servants through a forgiveness program, $10.5 billion for nearly a half-million borrowers with permanent disabilities, and $22 billion for 1.3 million borrowers whose colleges defrauded them or closed abruptly.

“I've heard the stories of IDR [income-driven repayment] borrowers who have had their debt discharged because we finally correctly counted their payment history and the public servants who can now afford to buy a house or save for their own children's education as we fix public service loan forgiveness,” Kvaal said. “And as we return to repayment, I'm heartened to hear [people] sharing how much they'll be saving under the SAVE plan.”

Republicans have accused the Biden administration of trying to circumvent the Supreme Court ruling striking down its earlier attempt to forgive some or all student loan debt for more than 43 million Americans. 

The Education Department has launched an extensive outreach campaign to alert borrowers about their new options. According to Kvaal, the department has been in touch directly with 43 million borrowers who will no longer benefit from the pause on interest and 28 million more who are returning to payments. It has sent more than 130 million emails and 8 million text messages, he added.

While the Education Department calls the SAVE plan the “most affordable student loan repayment plan in history,” Kvaal said other income-driven plans may better serve some people based on their individual circumstances.

Borrowers can apply for an income-driven plan at StudentAid.gov. For most SAVE applicants, the new monthly payment amount will be reflected the following month, officials said. For those whose applications require more time for processing, their loans will be placed in forbearance.