ore than 275,000 borrowers enrolled in Saving on a Valuable Education , public service loan forgiveness , and others who benefit from previously announced income-driven repayment plan adjustments will see student debt relief amounting to $7.4 billion applied on their accounts, the Biden Administration announced Friday.“Today’s announcement shows—once again—that the Biden-Harris Administration is not letting up its efforts to give hardworking Americans some breathing room,” U.S.
Borrowers will receive an email from the Department of Education starting Friday informing them of the changes to their account. will wipe out $3.6 billion in debt for 206,800 borrowers. “This relief will go to borrowers who are enrolled in the SAVE Plan who had smaller loans for their postsecondary studies,” according to afrom the Department of Education. Borrowers who have made 10 years of payments and borrowed $12,000 or less will see the aid.
The relief will be based on a borrower’s original principal balance, not what a borrower currently owes, per the Education Department. Another $3.5 billion will be erased from the accounts of borrowers who benefit from the adjustments made to the income-driven repayment plan. Borrowers enrolled in an income-driven repayment plan can see their debt forgiven after 20 or 25 years of payments, depending on their loan. That adjustment, which was initiallyMore than 4,500 borrowers enrolled in the public service loan forgiveness plan will also see forgiveness. The debt relief is part of the Biden Administration’s larger effort to fulfill their previous campaign promise of student loan forgiveness.
“Today we are helping 277,000 borrowers who have been making payments on their student loans for at least a decade,” said U.S. Under Secretary of Education James Kvaal in a press release. “They have paid what they can afford, and they have earned loan forgiveness for the balance of their loan.”TIME may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.