Posted on 01/17/2024 9:53:12 PM PST by SeekAndFind
Last week, the Biden-Harris Administration announced a plan to accelerate the forgiveness timeline for the Saving on a Valuable Education (SAVE) Plan.
Starting next month, eligible borrowers - those who have made at least 10 years of monthly payments and initially borrowed $12,000 or less for college expenses - will have their entire balances forgiven.
The Education Department is fast-tracking this debt relief months ahead of the original July 1, 2024 date.
“Beyond being the most affordable student loan repayment plan ever available, the Biden-Harris Administration designed the SAVE Plan to put community college students and other low-balance borrowers on a faster track to debt forgiveness than ever before,” said U.S. Secretary of Education Miguel Cardona.
The Education Department urges all borrowers who originally borrowed $12,000 or less to apply for SAVE as soon as possible.
The loans of eligible recipients will be discharged automatically, requiring no action on their part.
“I want folks to recognize [that it takes] 10 minutes to fill out the SAVE plan, and you could be getting an email as early as February telling you that your debt is cleared out,” Cardona said.
SAVE—an income-driven repayment plan that adjusts borrowers' monthly payments based on income and family size—has seen a massive surge in enrollment lately.
As of early January, 6.9 million borrowers had already enrolled in the SAVE Plan, more than double the number of people who enrolled in the Revised Pay As You Earn (REPAYE) plan that the SAVE Plan replaced in August.
Borrowers on SAVE are repaying an estimated $374 billion in federal student loans, which amounts to nearly 30% of all Direct Loans dollars in repayment, deferment, or forbearance.
SAVE enrollees have been reporting significant financial benefits compared to the previous REPAYE Plan, with 3.9 million reportedly having a $0 payment and others saving an estimated $117 a month.
"With lower monthly payments, protection from runaway interest, and faster timelines to debt forgiveness, President Biden’s SAVE plan is not only benefiting millions of current borrowers but also providing the students of today and tomorrow with a more affordable pathway to college degrees and credentials,” Cardona said.
The SAVE Plan forgiveness is yet another initiative by the Biden-Harris Administration to take the burden of student debt off Americans’ shoulders.
According to Creditnews Student Debt Tracker, the administration has already approved nearly $132 billion in targeted relief for over 3.6 million borrowers.
Next up are the 6.9 million SAVE borrowers, with potentially more to come as Biden's 2024 reelection campaign goes into full swing.
The SAVE Plan forgiveness is yet another initiative by the Biden-Harris Administration to take the burden of student debt off Americans’ shoulders.
LIARS! Who’s PAYING for this, if not Americans???
And nobody in our government can, will, or wants to try and figure out how this impacts inflation as basically it erases money from the economy, money that was promised on agreed upon debts.
That's going to disqualify A LOT of borrowers
Borrowed less than 12k and made 10 years worth of payments. Hahaha tost stupid kids that supported him won’t meat either of those haha
Fools
I'm to the point where maybe OUR people should get the largess, not the illegal NOT CITIZENS.....
But Trump is the dictator. Right.
“...months ahead of the original July 1, 2024 date”
Hmmm...I wonder why the big rush. It’s a mystery.
“won’t meat either of those”
Yeah, those dumb vegetables!
NO
Joe is buying votes using the money of the American citizens...
This or something similar was shot down by the SCOTUS last
year. How is this different?
Congressional approval? We don’t need no steenking Congressional approval!
democrats do not play by the rules to which they object, and make up their own rules for themselves as they go along.
I’m sure there are some people who borrowed less than 12,000 dollars and have been paying it back for 10 years. Those are very specific numbers. It means that there will not be a huge amount of money involved. It’s just political posturing. They will be able to say they forgave student debt but really they didn’t.
Election? Or something else related to the dollar?
And all those virtuous deadbeat millennials who are so worried about climate change and the downtrodden trans community are more than willing to have their votes bought.
SAving on a Valuable Education. If it was a valuable education, there’d be no need to forgive the loan supposedly used to get it.
I thought the courts ruled against this.
Election. Vote-buying all over the place so far this year.
The Rats don’t care about no stinking laws, no stinking Supreme Court, or being morally and legally right.
The Rats know how to buy votes with your stinking money.
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