Who’s eligible for forgiveness?
Biden is persisting in his piecemeal approach to student loan forgiveness, after the Supreme Court struck down his original plans last year.
About 206,800 people who originally borrowed $12,000 or less and are enrolled in the new SAVE plan will receive the majority of relief, while an additional 65,000 enrolled in repayment plans will see reductions in the amounts they owe through “administrative adjustments.”
And another 4,600 borrowers are receiving relief through changes to Public Service Loan Forgiveness (PSLF).
The Education Department says these borrowers should expect to be notified by email, starting today and see their relief processed in the coming weeks.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreRepublican attorneys are pushing to axe the SAVE plan
Biden is still facing loud opposition from Republicans who have called his latest plans to forgive student debt a ploy to buy support from young voters ahead of this November’s election.
“The administration is tone deaf. There’s no other way to put it,” said Education and the Workforce Committee chairwoman Virginia Foxx (R-NC) in a statement, calling Biden’s plans an “illegal loan scheme.”
“What is absolutely maddening is that the administration is STILL not doing its job and instead focusing on its student loan shenanigans. “Enough is enough, Mr. President.”
In the meantime, 18 states are suing the Biden administration over the SAVE program in two separate lawsuits, claiming it undermines a separate cancellation program that promotes careers in public service.
That said, the lawsuits don’t address what would happen to borrowers who have already seen their debts wiped through the SAVE program. A court document filed by Kansas’ attorney general says it’s “unrealistic to think that any loan forgiveness that occurs during this litigation will ever be clawed back,” reports the Associated Press.
The richest 1% use an advisor. Do you?
Wealthy people know that having money is not the same as being good with money. Advisor can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning. Try Advisor now.
