This time, President Joe Biden is wiping out another round of student loan debt. The Biden Administration said that wiping out $1.2 billion in student loan debt would help about 150,000 people.
Saving on a Valuable Education is the name of the new plan to pay back the loans that were canceled. This is for people who have been on a payback plan for more than 10 years and borrowed less than $12,000. It is also known as the SAVE plan.
It’s common for people to no longer have to make payments on their debt after 20 to 25 years. The SAVE plan, on the other hand, lets people get their debts forgiven after just 10 years of making payments. This makes it a much faster and better way to get out of debt.
The U.S. Secretary of Education, Miguel Cardona, said, “With today’s announcement, we are once again sending a clear message to borrowers who had low balances: if you’ve been paying for a decade, you’ve done your part and you deserve relief.”
From Wednesday on, people who are qualified for this forgiveness will start getting emails from Joe Biden. The Department of Education says that after getting the text, the borrowers won’t need to do anything else. People who have signed up for Joe Biden’s program to help people with student loans have been paying for at least 10 years and whose total loan amount is $12,000 or less will start getting emails.
Biden asked to help students get their loans forgiven in June of last year, but his request was turned down. Since then, the Biden government has been looking into all possible ways to help students get their debt forgiven. Biden has been able to cancel almost $138 billion in student loans since then.
