The Biden-Harris administration is set to announce the automatic discharge of $1.2 billion in student loans for nearly 153,000 eligible borrowers under President Joe Biden's Saving on a Valuable Education (SAVE) Plan.
With 7.5 million borrowers now enrolled in SAVE, this action is a big step in the administration's efforts to provide relief to student loan borrowers. U.S. Secretary of Education Miguel Cardona highlighted the importance of this announcement, stating, "if you've been paying for a decade, you've done your part, and you deserve relief."
Under the SAVE Plan, borrowers who have been making at least 10 years of payments and originally borrowed $12,000 or less for college are eligible for forgiveness. For every $1,000 borrowed above $12,000, borrowers can receive forgiveness after an additional year of payments.
Borrowers will start receiving emails of their approval for forgiveness, with no further action required on their part. This move is part of the administration's commitment to bringing relief to borrowers burdened by student loan debt.
Education Secretary Miguel Cardona emphasized the extent of this initiative, noting that nearly 3.9 million borrowers have now received loan forgiveness totaling almost $138 billion. The administration aims to streamline the loan forgiveness process, making sure that eligible borrowers receive the relief they deserve without unnecessary hurdles. The Department of Education plans to reach out to other eligible borrowers next week who are not yet enrolled in the SAVE plan.
President Biden's announcement accelerates the forgiveness process, providing relief to borrowers six months earlier than originally planned. The administration's efforts exhibit a commitment to addressing the challenges faced by millions of Americans burdened by student loan debt.
"These are historic efforts that reflect the president's commitment, again, to deliver as much relief as possible to as many borrowers as possible as quickly as possible," Miguel Cardona said. "Bottom line is this: We're providing real, immediate breathing room on an unacceptable reality where student loan payments compete with basic needs, like putting food on the table and accessing health care."
In addition to loan forgiveness, the administration is aiming to strengthen Pell Grants, protect borrowers from predatory practices, and exploring alternative paths to student debt relief.
