Another 160,000 borrowers will see student loan relief

Jordan Connell
·2 min read
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WASHINGTON (NEXSTAR) – An additional 160,000 people are expected to get an email this week from the Biden administration canceling their student loans. The cancellations are part of several income-driven repayment plans, including Biden’s SAVE Plan.

Secretary of Education Miguel Cardona said in total more than 4.7 million Americans have seen debt relief totaling $167 billion. This latest round is erasing $7.7 billion in federal student loans.

“We’re rightsizing a situation that was broken for many, many years,” Cardona said.

According to the White House, this round of loan forgiveness is going to people who qualified under the SAVE Plan, public service workers and borrowers who were approved for relief under other income-driven repayment plans.

“The President is committed to making sure that if you’re willing to go onto higher education, you work hard and you have the aptitude, you should be able to find success in higher education,” Cardona said.

Under the SAVE Plan, millions of Americans have had their debt erased. It provides relief to those who have been paying off their loans for at least 10 years and took out 12,000 or less. However, the plan is currently facing legal challenges in several Republican-led states.

The Department of Education said it is also working on a new one-time cancellation proposal that would provide relief to more than 30 million borrowers. It’s designed to help those who are not already covered by existing loan forgiveness programs.

“It’s important to keep in mind that we’re trying to fix a broken system so that we’re not doing debt relief forever,” Cardona said.

The new proposed relief plan is still under review and is likely going to face legal challenges.

The Associated Press contributed to this report.

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