White House Approves $7.7 Billion in Student Debt Cancellation for 160,500 Borrowers

On Wednesday, the White House made a significant announcement, revealing the approval of $7.7 billion in student debt cancellation for 160,500 borrowers.

The president’s latest initiative aims to relieve millions of borrowers of their student loan debt.

What You Need to Know:

Amount of Debt Relief: $7.7 billion
Number of Borrowers: 160,500
Total Relief to Date: $167 billion for 4.75 million borrowers
Focus Groups: Public servants and SAVE plan participant

Some people support the effort because it helps those struggling with large amounts of debt. However, others strongly criticize it, saying that canceling student loan debt is unfair and accusing Biden of trying to gain votes for the 2024 election.

Forgiveness will go to Borrowers in Three Categories:

Beneficiaries of the newest student loan forgiveness efforts include people in three categories who meet certain milestones that make them eligible for cancellation.

Including 54,000 borrowers enrolled in Biden’s Saving on a Valuable Education (SAVE) repayment plan; who are teachers, nurses, law enforcement officials, and other public service workers.
39,000 who are already enrolled in earlier
income-driven plans.
67,000 who are eligible through the Public Service Loan Forgiveness program.

How can I Determine if I Qualify for Forgiveness?

The Biden administration has announced that individuals who meet the criteria for this latest round of debt cancellation will receive an email notification confirming their approval. This email will provide detailed information on the amount of debt being canceled and any necessary next steps.

Total Debt Relief Under Biden Administration

So far, the Biden administration has approved a total of $167 billion in student debt cancellation. This has helped about 4.75 million individuals, which is roughly 10% of all student loan borrowers in the United States.

What is President Biden’s (SAVE) plan?

The Saving on a Valuable Education (SAVE) plan was created to relieve student loan borrowers significantly by lowering monthly payments and preventing interest accrual that increases loan balances.

It aims to help over 20 million borrowers by reducing their financial burden and making it easier to repay their student loans.