Who qualifies for Biden’s new $1.2B student loan relief?

The Biden administration recently announced it will forgive $1.2 billion in student loan debt, benefiting nearly 153,000 borrowers.

Who qualifies?
Those enrolled in the SAVE repayment plan who originally borrowed $12,000 or less for college and have been repaying for at least 10 years are eligible.

For each additional $1,000 borrowed beyond the threshold forgiveness is granted after an extra year of payment.

So far, after the Supreme Court blocked his initial plan of canceling $400 billion in student debt for about 43 million borrowers, the Biden admin has canceled $138 billion in student debt for 3.9 million borrowers.

What’s next?
Eligible borrowers can expect to receive a confirmation email from President Joe Biden. 

Loan servicers will then process the forgiveness, and borrowers should soon see changes reflected in their accounts. 

Furthermore, the Education Department plans to reach out to potential qualifiers next week, offering guidance.