At Extreme Investor Network, we understand the importance of staying updated on the latest developments in personal finance. That’s why we are excited to share with you the recent announcement from the Biden administration regarding student loan forgiveness.
In a move to alleviate the burden of education debt on households, the Biden administration has approved the forgiveness of $7.7 billion in student loans for over 160,000 borrowers. This relief is a result of the U.S. Department of Education’s enhancements to its income-driven repayment plans and Public Service Loan Forgiveness program.
Education Secretary Miguel Cardona expressed the administration’s commitment to providing student debt relief to millions of borrowers across the country. The loan forgiveness includes $5.2 billion for 66,900 borrowers pursuing Public Service Loan Forgiveness and $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 option allows for student loan forgiveness after 10 years for those who originally borrowed $12,000 or less.
Since the Supreme Court overturned President Biden’s broad student debt cancellation plan last year, the White House has focused on utilizing existing authority to reduce borrowers’ balances. The total amount of forgiveness granted by the Biden administration now stands at $167 billion, benefiting 4.75 million borrowers. Much of this aid comes from expanding the reach of and addressing challenges within existing loan forgiveness programs.
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