(UnitedVoice.com) – In 2023, the Supreme Court prevented President Joe Biden from wiping out student loan debt for millions of Americans. The POTUS went back to the drawing board and came up with a new plan to eliminate debt for some people. He recently announced another wave of forgiveness.
On February 21, the White House released a statement announcing the president approved the cancellation of school loans for 153,000 borrowers who are currently enrolled in the Saving on a Valuable Education (SAVE) repayment plan. The SAVE plan provides forgiveness to borrowers who have been repaying their loans for 10 years and took out $12,000 or less.
For every $1,000 in additional loans they took out, they will need to make an extra year of payments. As an example, a person who borrowed $14,000 could receive forgiveness now if they have been repaying the loan for 12 years.
Prior to the changes the Biden administration made, borrowers had to make payments for 20 or 25 years before becoming eligible for forgiveness.
The latest round will wipe out $1.2 billion of loan debt. The total amount his administration has forgiven now totals $138 billion for 3.9 million people.
During an event at a library in Culver City, California, the president argued that student loan forgiveness was good for the economy. He said that it has freed many Americans from the weight of their student loan debt and has allowed them to “get on with their lives.”
Biden’s administration will start sending out emails to borrowers to let them know the president is forgiving their loans, ensuring that he gets the credit in the election year. The Department of Education’s email will congratulate the borrower and state that the POTUS’ SAVE Plan is the reason for forgiveness. “I hope this relief gives you a little more breathing room,” the president states in the email.
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