Current:Home > MyBiden forgives $5 billion more in student loan debt. Here's who qualifies and how to apply.-VaTradeCoin
Biden forgives $5 billion more in student loan debt. Here's who qualifies and how to apply.
lotradecoin accountsetup View Date:2024-12-25 23:06:45
Student loan relief is coming to another 74,000 Americans, with President Biden on Friday announcing an additional $5 billion in debt forgiveness for borrowers including teachers, nurses and firefighters.
The announcement marks the latest round of debt cancellations since the Supreme Court last summer blocked Mr. Biden's student loan forgiveness program, and brings to $136.6 billion forgiven for more than 3.7 million Americans.
The discharges are the result of fixes made by the administration to income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF), with the Department of Education saying that payments are now being accounted for more accurately.
The Biden administration a week ago said that, starting in February, people with less than $12,000 in student loans and who have been making payments for at least 10 years would get their remaining loan balance erased. Borrowers also have to be enrolled in the White House's new Saving on a Valuable Education (SAVE) repayment plan.
Who qualifies for Biden's latest round of student loan forgiveness?
Nearly 44,000 of the borrowers approved for debt relief are teachers, nurses, firefighters, social workers and public servants with at least 10 years of service. The remaining close to 30,000 borrowers have been making payments on their loans at least 20 years, but who did not get relief through income-driven repayment plans.
Broken down, the relief unveiled on Friday includes the following categories:
- $1.7 billion for 29,700 borrowers through administrative adjustments to IDR payment counts that have brought borrowers closer to forgiveness and address "longstanding concerns with the misuse of forbearance by loan services." The latest move brings to $45.7 billion in IDR relief for 930,500 borrowers overall, according to the DOE.
- $3.2 billion for 43,000 borrowers under the Public Service Loan Forgiveness (PSLF) program. Total relief through PSLF now stands at $56.7 billion for 793,400 borrowers since late 2021.
Why is it necessary to fix income-driven repayment plans?
The Higher Education Act and Education Department regulations state that a borrower is eligible for forgiveness after making either 240 or 300 monthly payment in an IDR plan or the standard repayment plan. The different number of months depends on when a borrower first took out the loans, what type of loans they had and the IDR plan in which they were enrolled.
But faulty payment counts meant that some borrowers weren't progressing toward loan forgiveness, the administration noted.
How many people are enrolled in SAVE?
There are about 6.9 million borrowers enrolled in the new IDR plan, and about 3.9 million of those have monthly payments of $0, according to the administration.
How to apply for student loan debt relief
Borrowers can find additional resources at studentaid.gov and sign up for the SAVE plan at StudentAid.gov/save.
Kate GibsonKate Gibson is a reporter for CBS MoneyWatch in New York.
veryGood! (676)
Related
- Michael Bublé Details Heartwarming Moment With Taylor Swift’s Parents at Eras Tour
- No contaminants detected in water after Baltimore bridge collapse, authorities say
- Patrick Mahomes' Wife Brittany Mahomes Models Tiny Red Bikini in New Photo
- Why Rebel Wilson Thinks Adele Hates Her
- 'Squid Game' without subtitles? Duolingo, Netflix encourage fans to learn Korean
- As Biden Pushes For Clean Factories, a New ‘How-To’ Guide Offers a Path Forward
- Horoscopes Today, April 2, 2024
- UConn men delayed in Connecticut ahead of Final Four because of plane issues
- Luigi Mangione's Lawyer Speaks Out in UnitedHealthcare CEO Murder Case
- Caitlin Clark wins second straight national player of the year award
Ranking
- Albertsons gives up on Kroger merger and sues the grocery chain for failing to secure deal
- US applications for jobless benefits rise to highest level in two months, but layoffs remain low
- JetBlue brings dynamic pricing to checking bags. Here's what it will cost you.
- Shohei Ohtani homers for the first time as a Dodger, gets ball back from fan
- Lil Durk suspected of funding a 2022 murder as he seeks jail release in separate case
- LSU star Angel Reese uses Vogue photoshoot to declare for WNBA draft: I like to do everything big
- Nick Cannon says he feels obligated to 'defend' Sean 'Diddy' Combs in resurfaced interview
- Demolition of groundbreaking Iowa art installation set to begin soon
Recommendation
-
Travis Kelce Praises Taylor Swift For Making Eras Tour "Best In The World"
-
'Call Her Daddy' star Alex Cooper joins NBC's 2024 Paris Olympics coverage
-
'We do not know how to cope': Earth spinning slower may prompt negative leap second
-
First Democrat enters race for open Wisconsin congressional seat in Republican district
-
'Secret Level' creators talk new video game Amazon series, that Pac
-
Officer hired as sheriff’s deputy despite involvement in fatal Manuel Ellis arrest resigns
-
No contaminants detected in water after Baltimore bridge collapse, authorities say
-
Andy Cohen regrets role in Princess Kate conspiracy theories: 'Wish I had kept my mouth shut'