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President Joe Biden's recent approval of $1.2 billion in student debt cancellation has brought relief to 153,000 borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plans. SAVE is an income-driven repayment program that bases monthly payments on the borrower’s income.
Borrowers who have participated in the program for a minimum of 10 years and have original debts totaling $12,000 or less are now eligible for full forgiveness. For every $1,000 borrowed above $12,000, borrowers can receive forgiveness after an additional year of payments. This relief comes earlier to borrowers, as it was expected in July.
Eligible borrowers will be contacted via email by the Department of Education (DOE) informing them of their debt forgiveness. More eligible borrowers will receive notifications, including those who qualify for early relief but are not currently enrolled in the SAVE plan.
This student debt forgiveness initiative will have a significant impact on individuals burdened with student loans. Borrowers who are eager to determine their eligibility for this relief can reach out to their loan servicer for clarification. Furthermore, borrowers can visit the DOE’s website and sign up to receive email and text notifications. Download the bulletin for more details.