Joe Biden : “SAVE Plan: 150K+ Borrowers Get Student Debt Relief!”

Biden Administration to Automatically Forgive Student Debt for 153,000 More Americans

The Biden administration is set to provide automatic student debt relief to an additional 153,000 individuals starting Wednesday, bringing the total number of Americans approved for debt forgiveness to nearly 3.9 million.

President Joe Biden will highlight this latest round of debt relief in a speech from Los Angeles, with thousands of recipients receiving an email notification from the president informing them of their eligibility for relief.

The recipients of debt relief under the new initiative are individuals who have enrolled in the recently introduced student loan payment plan known as the SAVE Plan. This plan, deemed the most cost-effective option for the majority of borrowers by the Department of Education, offers relief to those who took out less than $12,000 in initial loans and have been making payments for over a decade.

Education Secretary Miguel Cardona expressed the administration’s commitment to providing relief to as many borrowers as possible in a timely manner through the SAVE Plan, which currently boasts around 7.5 million enrollees.

Expanding Debt Relief Reach

While the 153,000 individuals set to receive automatic relief this week mark the initial group benefiting from the SAVE Plan, future enrollees who meet the specified criteria will also qualify for debt forgiveness.

As of the latest update, there remains a significant number of Americans who could potentially qualify for debt relief but have yet to enroll in the SAVE Plan. The Biden administration is actively working on enhancing outreach efforts in light of an estimated 27 million Americans currently repaying student loans.

Existing Debt Relief Recipients

Apart from the latest round of debt relief recipients, over 3.7 million individuals have already been approved for various debt forgiveness programmes under the Biden administration.

Among these, more than half a million borrowers have received debt relief following claims of total and permanent disability, while 1.3 million borrowers have been granted forgiveness due to fraudulent practices by their educational institutions.

Significant relief has also been provided to individuals participating in public service roles and income-driven repayment plans, with over 793,000 borrowers benefiting from fixes to the Public Service Loan Forgiveness (PSLF) programme.

Additionally, around 930,500 borrowers enrolled in income-driven repayment plans have had their debts approved for relief after fulfilling their payment obligations.

Continued Efforts for Debt Relief

While acknowledging the impact of these debt relief programmes on millions of borrowers, the Biden administration remains dedicated to furthering efforts in this regard. The administration continues to advocate for relief measures, with President Biden set to address the issue during his upcoming speech in Los Angeles.

Natalie Quillian, White House Deputy Chief of Staff, emphasised the positive outcomes of debt relief initiatives, noting how millions of borrowers and their families have been able to pursue their aspirations without the burden of student debt.