Biden Approves $1.2 Billion in Student Loan Debt for Over 150,000 Borrowers

United States North America Higher Education News Statistics by Erudera News Feb 22, 2024

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US President Joe Biden has approved $1.2 billion in student loan forgiveness for almost 153,000 borrowers, the US Department of Education has announced.

According to a press release by the Education Department, the announcement applies to student loan borrowers eligible for forgiveness under Biden’s initiative known as Saving on a Valuable Education (SAVE) Plan, Erudera.com reports.

The Biden-Harris administration unveiled this plan in August last year to make forgiveness happen faster.

Additionally, individuals who took $12,000 or less and have been paying debt over the past decade are eligible for relief.

“For a borrower to be eligible for this forgiveness they must be enrolled in the SAVE Plan, have been making at least 10 years of payments, and have originally taken out $12,000 or less for college. For every $1,000 borrowed above $12,000, a borrower can receive forgiveness after an additional year of payments,” the Department explains.

Commenting on the move, Miguel Cardona, the US Secretary of Education, said the approval sends a clear message to student loan borrowers. He went on to say that those who have repaid debt for a decade have done their part and deserve relief.

“Under President Biden’s leadership, our Administration has now approved loan forgiveness for nearly 3.9 million borrowers, and our historic fight to cancel student debt isn’t over yet, “Cardona added.

The initiative aims, in particular, to help community college and borrowers who owe smaller debt and put many on the path to being debt-free faster than ever before, the White House said in a statement.

According to the statement, under Biden’s SAVE plan, 85 percent of future community college borrowers will be free of student debt within 10 years.

On Wednesday, the Biden-Harris administration started emailing some borrowers who will benefit from the SAVE program, notifying them that they will no longer need to take any steps to receive relief.

Moreover, borrowers qualifying for forgiveness under the Plan will see their loans automatically canceled with no action needed on their part.

So far, over 7.5 million people have enrolled in the SAVE Plan, and a total of 4.3 million don’t have monthly payments.

Data released by the Department show the following amounts have been forgiven to date:

  • $56.7 billion for over 793,000 borrowers through fixes to PSLF
  • $45.6 billion for over 930,000 borrowers through improvements to income-driven repayment
  • $11.7 billion for over 510,000 borrowers with a total and permanent disability
  • $22.5 billion for 1.3 million borrowers through closed school discharges, borrower defense, and related court settlements

Related links:

>> Biden Approves $4.9 Billion in Student Loan Debt Relief for 73,600 Borrowers

>> Successful Audiobook Narrator Owes $60K in Student Loans: I’ve Been a Victim for 10 Years of Adulthood

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