Approximately 153,000 student loan borrowers who are part of a new repayment plan introduced by the Biden administration will receive an email on Wednesday informing them that their remaining federal student loan debt will be forgiven, amounting to around $1.2 billion.
The email is anticipated to contain a congratulatory message from President Joe Biden, with his administration keen on highlighting their efforts to tackle student loan debt as the presidential election approaches.
President Biden faced a setback in his efforts to offer student debt relief when the Supreme Court turned down his key student loan forgiveness initiative last year.
“My Republican friends in Congress, elected officials, and special interests intervened and filed a lawsuit, resulting in the Supreme Court blocking it.” However, Biden expressed determination during brief comments delivered at a small community library in Culver City, California on Wednesday.
The administration has been actively seeking additional ways to assist borrowers.
Approximately $138 billion in federal student loan debt has been forgiven for nearly 3.9 million borrowers since Biden assumed office.
When questioned about the possibility of the Supreme Court overturning his recent decision on student loan forgiveness, Biden confidently stated: “I have no concerns whatsoever.”
The most recent debt relief measures will affect certain borrowers who are part of a new repayment plan called SAVE (Saving on a Valuable Education), introduced by the administration in August as the pandemic-related payment pause was coming to an end.
According to the proposal, any federal student loan amounts still outstanding will be forgiven for individuals who initially borrowed $12,000 or less and have been making payments for a minimum of 10 years.
Initially, debt relief under SAVE was not set to start until July. However, the Biden administration announced last month that it would begin earlier in February.
Biden Expands Loan Cancellation, Exceeding Past Records
The majority of federal student loan debt cancellations during Biden’s administration have been facilitated by pre-existing programs. These programs typically cater to certain groups of borrowers, including public-sector workers, individuals deceived by for-profit colleges, and those who have made payments for over 20 years.
During Biden’s administration, the Department of Education has forgiven a higher amount of federal student loan debt compared to previous administrations. This was achieved by temporarily expanding debt relief programs and rectifying past administrative mistakes related to borrowers’ student loan accounts.