More

    The Biden administration has implemented a new plan that involves the cancellation of student loans for over 150,000 borrowers.

    Published on:

    The Biden administration is set to cancel $1.2 billion in student debt for approximately 153,000 borrowers who have been repaying modest loans over the last decade or more. Eligibility for forgiveness is based on enrollment in the administration’s Saving on a Valuable Education (SAVE) repayment plan, having made at least 10 years of payments, and originally borrowing $12,000 or less for college. The White House added that for each additional $1,000 borrowed above $12,000, borrowers can receive forgiveness after another year of payments. As an example, the fact sheet mentions that a borrower who took out $14,000 or less for an associate’s degree in biotechnology would receive full debt relief after 12 years in repayment.

    Recipients of the relief are expected to receive an email from President Joe Biden expressing hope that the relief provides them with more breathing room. The White House revealed that the plan, launched last summer, was initially scheduled for July, making the loan cancellations about six months ahead of the original timeline.

    Education Secretary Miguel Cardona stated that the forgiveness will occur automatically, bringing the total student debt canceled by the Biden administration to nearly $138 billion for almost 3.9 million borrowers. Cardona emphasized the historic efforts to deliver relief quickly, addressing the challenge where student loan payments compete with basic needs.

    The Department of Education plans to directly contact other eligible borrowers not enrolled in the SAVE plan next week. President Biden noted that 7.5 million people are now enrolled in the plan out of the 30 million who are eligible. The debt relief program was introduced last year after the Supreme Court struck down Biden’s original student debt relief program, which aimed to cancel up to $20,000 in debt for about 43 million borrowers.

    Source: nbcnews.com

    SEE ALSO

    Leave a Reply

    Please enter your comment!
    Please enter your name here