President Biden Announces $7.7 Billion in Student Loan Debt Forgiveness Initiatives
Are you drowning in student loan debt and feeling overwhelmed by the burden it places on your finances? Well, there may be some relief on the horizon. U.S. President Joe Biden recently announced a significant round of student loan forgiveness, aimed at helping millions of borrowers across the country.
In a statement from Education Secretary Miguel Cardona, the Biden-Harris Administration expressed their commitment to providing relief to those struggling with student debt. This latest round of forgiveness includes $5.2 billion for 66,900 borrowers pursuing Public Service Loan Forgiveness, as well as $1.9 billion for 39,200 individuals enrolled in income-driven repayment plans.
Additionally, $613 million will be allocated to 54,300 borrowers under the new income-driven repayment option, known as the Saving on a Valuable Education (SAVE) plan. This plan offers student loan forgiveness after 10 years for those who originally borrowed $12,000 or less.
Following the Supreme Court’s rejection of President Biden’s broader student debt cancellation plan, the administration has focused on utilizing existing authority to reduce borrowers’ balances. By expanding access to and improving existing loan forgiveness programs, the Biden administration has already forgiven the debt of 4.75 million borrowers, totaling $167 billion in aid.
Historically, navigating these loan forgiveness options has been challenging for borrowers, with many struggling to access the relief they are entitled to. However, recent efforts to streamline these programs and improve accountability within the Education Department have made it easier for borrowers to receive the assistance they need.
If you have recently had your student debt forgiven and are willing to share your experience, CNBC is looking to hear from you. You can email Annie Nova at Annie.nova@nbcuni.com to potentially be featured in an upcoming story.
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