Biden administration cancels student loans of more than 150,000 borrowers under new plan

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https://www.nbcnews.com/politics/white-house/biden-administration-cancels-student-loans-150000-borrowers-new-plan-rcna139731

Biden administration cancels student loans of more than 150,000 borrowers under new plan
Those who qualify must be enrolled in the administration's Saving on a Valuable Education (SAVE) repayment plan, which was launched last summer.
Feb. 21, 2024, 8:03 AM CST
By Rebecca Shabad and Tara Prindiville

WASHINGTON — The Biden administration on Wednesday is canceling $1.2 billion in student debt for about 153,000 borrowers who took out relatively modest student loans and have been repaying it for the last decade or more.

A borrower can qualify for the forgiveness if they're enrolled in the administration’s Saving on a Valuable Education (SAVE) repayment plan and "have been making at least 10 years of payments, and have originally taken out $12,000 or less for college," a White House fact sheet said. It also said that "for every $1,000 borrowed above $12,000, a borrower can receive forgiveness after an additional year of payments."

As an example, the fact sheet said, "a borrower enrolled in SAVE who took out $14,000 or less in federal loans to earn an associate’s degree in biotechnology would receive full debt relief starting this week if they have been in repayment for 12 years."

Those who receive the relief are expected to receive an email with a message from President Joe Biden saying, "I hope this relief gives you a little more breathing room."

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https://www.cnn.com/2024/02/21/politics/student-loan-forgiveness-biden-debt/index.html

Biden has canceled nearly $138 billion in student loan debt so far
By Katie Lobosco, CNN
Published 5:10 AM EST, Wed February 21, 2024

Washington (CNN) – President Joe Biden’s plans to provide student debt relief were dealt a significant blow when the Supreme Court rejected his signature student loan forgiveness program last year – but that hasn’t stopped his administration from finding other ways to help borrowers.

Nearly $138 billion of federal student loan debt has been canceled for almost 3.9 million borrowers since Biden took office.

The latest round of debt relief, announced Wednesday, will impact some borrowers who are enrolled in a new repayment plan known as SAVE (Saving on a Valuable Education), which the administration launched in August as the pandemic-related pause on payments was ending.

Under the new repayment plan, remaining federal student loan balances are erased for those who originally borrowed $12,000 or less and have made payments for at least 10 years.

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