The Biden Administration is rolling out another pathway to debt relief for certain student loan borrowers next month.
The program targets people who took out smaller loan balances initially and have been paying their loans down for over a decade, unable to get out from under the debt. It’s a component of the SAVE Plan, a new income-driven repayment plan rolled out by the Biden administration last year.
Specifically, people will qualify if they took out less than $12,000 as their initial student loan balance and have been paying it down for 10 years. They also have to be enrolled in SAVE.
The shortened pathway to debt relief is largely intended to benefit people who went to community college or didn’t end up graduating from college but still incurred debt, officials said, which has historically been the group at highest risk for defaulting on their loans.
Exactly, this is just one of many changes that gave gone through. The SAVE plan itself which is new provides a lot of benefits. Pslf has become much easier and broader. Tons of changes have been made across the existing student loan and forgiveness programs. There’s also another major new regulation working it’s way through that should be ready sometime this year.
https://www.forbes.com/sites/adamminsky/2023/12/05/big-student-loan-forgiveness-details-just-released-for-new-biden-plan/?sh=4b20208710b2
It’s not as broad as the original plan though. We also won’t know the exact details until the rule is finalized. Unfortunately the supreme court made clear they won’t allow the broad loan forgiveness Biden first tried unless congress passes another law (even though it seems multiple laws already clearly give Biden this power, but we don’t need to rehash all of that. Republicans are always gonna sue to stop any positive things done by democrats, and supreme court gonna supreme court).