The impacted borrowers are people enrolled in the SAVE Plan.

The Biden administration will begin automatically relieving student debt for another 153,000 people on Wednesday, bringing the total number of Americans approved for debt relief to nearly 3.9 million.

President Joe Biden will tout the new debt relief in a speech from Los Angeles, and thousands of people will receive an email from the president informing them that they now qualify for relief.

“Congratulations — all or a portion of your federal student loans will be forgiven because you qualify for early loan forgiveness under my Administration’s SAVE Plan,” the email from the president will read.

The people receiving debt relief beginning Wednesday are those who enrolled in the newest student loan payment plan, called the SAVE Plan, which the Department of Education calls the most affordable plan for the majority of borrowers.

Anyone enrolled in the SAVE Plan who took out less than $12,000 in initial loans and has been paying them down for the past 10 years or more will have them forgiven.

  • Hildegarde
    link
    -49 months ago

    You wean the one that required the federal government to spend money on marketing to make sure borrowers knew about the form they needed to fill out in order to allow the government to verify the borrower’s income so they could decide whether they were eligible for only $10k? Yes.

    Even if it wasn’t blocked, it ads so many unnecessary administrative costs instead of just processing a single transaction on every account.

    Even before the court’s intervention, Biden has shown no interest in doing forgiveness well, neither in the amount foregiven, nor the costs of doing so.

    • Flying Squid
      link
      29 months ago

      “Only” $10k. As if $10k in relief is nothing at all.

      • Hildegarde
        link
        19 months ago

        The cost of forgiveness is not proportional to the value of the relief. $100k costs the same as $10k. The number he chose is arbitrary. It’s telling he picked a small one.

        • Flying Squid
          link
          09 months ago

          You must be quite wealthy if you think $10k is not a lot of money to be forgiven.

          Also, are your student loan debts really $100k? Because they’re around $30k-$40k for most people. I would say 1/3 to 1/4 of the way to being debt free is pretty damn good.

          • Hildegarde
            link
            19 months ago

            Attempting to implement 1/3 to a 1/4 of a policy is failure.

            • Flying Squid
              link
              09 months ago

              You’re right. He shouldn’t have done anything at all to help anyone if he couldn’t give you a pony.