Biden Administration Announces $1.2 Billion Student Debt Cancellation for 153,000 Borrowers”
On Wednesday, the Biden administration announced the cancellation of $1.2 billion in student debt for approximately 153,000 borrowers who had taken out relatively modest student loans and have diligently repaid them over the past decade or more.
READ: Kristin Cavallari Spills the Tea on Her Hottest Hookup – Prepare for a Surprise!
Biden administration
Eligibility for this forgiveness is based on enrollment in the administration’s Saving on a Valuable Education (SAVE) repayment plan. According to a White House fact sheet, borrowers qualify if they have been making payments for at least 10 years and originally borrowed $12,000 or less for their college education. The fact sheet also outlined that for every $1,000 borrowed above $12,000, forgiveness can be obtained after an additional year of payments.
As an illustrative example, the fact sheet highlighted that a borrower enrolled in SAVE, who took out $14,000 or less in federal loans for an associate’s degree in biotechnology, would receive full debt relief after 12 years of repayment.
Recipients of the relief are anticipated to receive an email from President Joe Biden expressing his hope that this relief provides them with some breathing room. The email emphasizes the potential positive impact on individuals’ ability to support themselves and their families, buy homes, start small businesses, and pursue life plans that may have been delayed.
The White House revealed that the relief, initially scheduled for July, is being expedited by about six months. Education Secretary Miguel Cardona stated that the forgiveness would occur automatically, bringing the total student debt canceled by the Biden administration to nearly $138 billion for almost 3.9 million borrowers. Cardona highlighted the historical nature of these efforts, emphasizing the administration’s commitment to delivering relief promptly to as many eligible borrowers as possible.
President Biden mentioned that 7.5 million individuals are currently enrolled in the plan, out of the 30 million who are eligible. The debt relief program was introduced last year after the Supreme Court invalidated Biden’s initial student debt relief program, which aimed to cancel up to $20,000 in debt for around 43 million borrowers.
