Washington DC - President Joe Biden on Tuesday announced the official launch of a new income-driven student loan repayment program as demands for cancellation continue.

With student loan payments set to resume this fall, Biden officially announced a new program dubbed the Saving on A Valuable Education (SAVE) plan, which is aimed at easing the burden for borrowers.

The SAVE plan reduces the amount borrowers must pay toward undergraduate loans from 10% to 5% of their discretionary income, starting in July 2024. This year, the income exemption for monthly payments will be raised from 150% above the federal poverty line to 225%, affecting more than a million Americans, and unpaid interest will not increase if borrowers are making their payments.

"Millions of borrowers can reduce their monthly student loan bills by enrolling in the SAVE plan, the most affordable repayment plan in history," Education Secretary Miguel Cardona said in a press release. "The SAVE plan is another huge step forward in President Biden’s tireless efforts to fix the broken student loan system, reduce the burden of student debt on working families, and put borrowers first."

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The announcement of the program comes just under two months after the conservative-majority Supreme Court struck down the president's plan to waive more than $400 billion in federal student loans.

In July, the Biden administration announced it would automatically forgive $39 billion in student debt for 804,000 borrowers.

Although Biden has cast the SAVE plan as the fulfillment of his campaign commitment to borrowers, activists have been quick to point out that the actual promise was to cancel debt.

Advocates have argued that the president has it within his executive power to eliminate debt across the board. Doing so would provide much-needed relief for Americans of all ages whose wages have failed to keep up with skyrocketing costs of higher education and costs of living.

Meanwhile, many people who have begun applying for the SAVE plan via the government's online portal have reported problems with potentially drastic consequences.

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"We are hearing from people that servicers are simply miscalculating monthly payment amounts, sometimes dramatically causing people to have monthly payments several thousand dollars more than they should have," Thomas Gokey, policy director at The Debt Collective, told Yahoo. "We are also hearing from people who tried to switch to SAVE to have their payment go down. Instead, their payment went up."

There have also been reports of loan servicers telling borrowers it could take four weeks or more to process SAVE applications.