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The Biden administration has shared its plan for canceling $1.2 billion in student loan debt for over 150,000 borrowers.
According to NBC News, the president’s administration revealed their plans on Wednesday, February 21. The outlet notes that those impacted will receive an email with a message from President Biden.
The message reportedly shares Biden’s “hope” with passing the debt forgiveness plan.
“I hope this relief gives you a little more breathing room,” the email reportedly reads per NBC News. “Ive heard from countless people who have told me that relieving the burden of their student loan debt will allow them to support themselves and their families, buy their first home, start a small business, and move forward with life plans theyve put on hold.”
According to the outlet, the administration’s efforts will affect those enrolled in the Saving on a Valuable Education (SAVE) repayment plan. Additionally, those who enrolled need to have made “at least ten years of payments” on college loans that are $12,000 or less.
Furthermore, qualifications were also laid out for those who have taken out loans above $12,000.
“For every $1,000 borrowed above $12,000, a borrower can receive forgiveness after an additional year of payments,” NBC News reports.
For example, someone who enrolled in SAVE and received a loan of about $14,000 can “receive full debt relief… if they have been in repayment for 12 years.”
NBC News notes that the White House plans to contact those eligible for relief but aren’t enrolled in the SAVE repayment plan.
According to the outlet, Education Secretary Miguel Cardona has informed reporters of Biden’s progress in canceling student debt. Cardona reportedly noted that the Biden administration has canceled almost $138 billion for nearly 3.9 million borrowers.
“These are historic efforts that reflect the presidents commitment, again, to deliver as much relief as possible to as many borrowers as possible as quickly as possible,” Cardon reportedly explained. “Bottom line is this: Were 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.”
As The Shade Room previously reported, Cardona spoke on Biden’s student debt relief efforts exclusively with The Shade Room last year. Cardona explained the administration would “fight to provide targeted debt relief to those who have earned it.”
Additionally, Cardona shared information for those whose loans may have been eliminated without them being aware.
