Press Release
☷Biden Harris Administration Approves $1 2 Billion in Loan Forgiveness for Over 150 000 SAVE Plan Borrowers
U.S. Department of Education ( By Press Release office)
Feb 21,2024
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The Biden - Harris Administration is announcing that they will automatically forgive $1 . 2 billion in loans for nearly 153 , 000 borrowers who qualify for the shorter forgiveness period under President Biden ' s SAVE Plan . This comes as 7 . 5 million borrowers are now enrolled in SAVE , with 4 . 3 million having a $0 monthly payment . Borrowers with low loan balances who have been making payments for at least 10 years will receive relief . This is part of President Biden ' s efforts to address the student debt crisis and provide much - needed relief to borrowers . Borrowers will receive emails informing them of their forgiveness , and no further action is required on their part . Currently , there are 7 . 5 million borrowers enrolled in the SAVE Plan , with 4 . 3 million having a $0 payment . The SAVE Plan is the most affordable repayment option for low - and middle - income borrowers and can lead to earlier forgiveness . It protects borrowers from high interest rates and larger balances . The improved application allows borrowers to share their income with the IRS , so they don ' t have to recertify every year . So far , the Biden - Harris Administration has approved $56 . 7 billion for PSLF fixes , $45 . 6 billion for improvements to income - driven repayment , $11 . 7 billion for borrowers with disabilities , and $22 . 5 billion for closed school discharges and borrower defense . They are currently working on proposed regulations to make more borrowers eligible for loan forgiveness and will hold discussions on providing relief for borrowers facing hardship . These efforts are part of President Biden ' s commitment to finding an alternative path to student debt relief after last year ' s Supreme Court decision . The Department is also working on regulations to ensure institutional quality and program integrity , so students are well served by their colleges . The Department is going to roll out the rest of the SAVE Plan benefits in July 2024 , which means monthly payments will drop from 10% to 5% of a borrower ' s discretionary income . If you want to find out about forgiveness programs , check out StudentAid . gov/forgiveness . And for help choosing the best repayment plan for your finances , visit StudentAid . gov/restart . You can also get more details about the SAVE Plan at StudentAid . gov/save .
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