WASHINGTON — The Biden administration is on Wednesday to erase $1.2 billion in student debtfight 153,000 borrowers who took out relatively modest student loans and paid them back over the last decade or so.
A borrower can qualify for forgiveness if they enroll in the administration’s Savings for Value Education (SAVE) repayment plan and “have made at least 10 years of payments and first borrowed $12,000 or less toward college.” A White House information report said. He also said that “for every $1,000 borrowed above $12,000, a borrower can receive an additional year of forgiveness.”
As an example, the fact sheet states, “SAVE-enrolled borrowers who take out $14,000 or less in federal loans to earn an associate’s degree in biotechnology will receive full debt relief starting this week if they are repaid within 12 years.”
Recipients of the relief are expected to receive an email from President Joe Biden saying, “I hope this relief gives you a little more breathing space.”
“I’ve heard from countless people who say that easing their student loan debt burden will allow them to support themselves and their families, buy their first home, start a small business, and move forward with their life plans. put it on hold,” the email said.
The White House said Tuesday that the aid was provided under the plan launched last summeroriginally scheduled for July, and the credits are canceled about six months in advance.
Education Secretary Miguel Cardona told reporters Tuesday that the forgiveness will be automatic, bringing the total amount of student debt canceled by the Biden administration to about $138 billion for about 3.9 million borrowers.
“These are historic efforts that reflect the president’s commitment to deliver as much relief as possible to as many borrowers as quickly as possible,” he said. “The bottom line is this: We’re providing real, immediate breathing room in an unacceptable reality where student loan payments compete with basic needs like putting food on the table and access to health care.”
The Education Department plans to reach out directly next week to other borrowers who qualify for early aid but are not included in the SAVE plan, according to the White House.
Biden said last month While 6.9 million people are currently enrolled in the plan, 30 million people are eligible. The debt relief program was introduced last year after the Supreme Court Repeals Biden’s original student debt reduction programwhich aims to eliminate up to $20,000 in debt for approximately 43 million borrowers.
Zoe Richards contributed.