It was announced by the Biden government that they will forgive another set of student loans worth more than $7 billion for more than 160 thousand borrowers.
These changes were made by the U.S. Department of Education to their income-based repayment options and their Student Loan Forgiveness Program. Education Secretary Miguel Cardona said, “The Biden-Harris Administration is still working hard to help millions more people across the country get rid of their student loans.”
As part of the Public Service Loan Forgiveness program, over five billion dollars in loans have been forgiven for sixty thousand people. Another two billion dollars have been forgiven for forty thousand people who are on the income-driven payback plan.
This is part of the Biden administration’s new income-based payment plan called the SAVE plan. It will give an extra $650 million to 50,000 people. The SAVE plan could help students who have been in debt for more than ten years as long as they owed less than twelve thousand dollars at the start.
The Supreme Court turned down President Joe Biden’s plan to forgive student loans last year. However, the government has been playing around with the power they already have to forgive student loans.
Since the Biden government started to forgive loans, they have helped almost five million people get rid of their student debt. Some people said the programs were hard to use or that they weren’t giving them the help they were promised, so some changes have been made to them. One problem was that there was a rule that said the loan would be erased completely after a certain amount of time, but loan companies weren’t keeping track of the borrowers’ due dates.
