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White House announces another traunch of student debt relief: These borrowers will see their debt cancelled
It is an election year, and just as the Democratic Party is working to identify the coalition it will need to bring together in November, it is collapsing. The Biden Administration’s policy towards Israel during the country’s assault on the Gaza Strip has already claimed the lives of more than 35,000, has sent voters fleeing from the party and warning that they may leave the top of the ticket empty on their ballots later this year.
The latest news regarding student loan forgiveness
To bring some pieces of the coalition back in, the White House has continued to announce new efforts to increase student loan forgiveness after the Supreme Court ruled that the sweeping program proposed by the president was unconstitutional. The White House said that this new wave of forgiveness will bring the total of borrowers who have seen some of their debt canceled to 4.75 million, with the average amount being erased at $35,000. The Adminstration reported that 160,000 borrowers would be affected by the latest wave of giveness, which is taking place through the SAVE Plan, which is available to “public service workers like teachers, nurses, or law enforcement officials; or are borrowers who were approved for relief because of fixes we made to Income-Driven Repayment.”
What is the Saving on a Valuable Education (SAVE) plan?
Took effect summer 2023
- Guarantee that no borrower earning under 225% of the federal poverty level, about the annual equivalent of a $15 minimum wage for a single borrower, will have to make a monthly payment.
- Not charge borrowers with unpaid monthly interest, even when that monthly payment is $0 because their income is low.
Spouse no longer has to co-sign IDR application
Will take effect July 2024: highlights
- For undergraduate loans, cut in half the amount that borrowers have to pay each month from 10% to 5% of discretionary income.
How to sign up for the SAVE plan
The application process only takes about 10 minutes. The government’s new plan for student loan repayment is income-driven, and can be applied for on the Student Aid Income-Driven Repayment (IDR) Plan Request webpage will allow borrowers to start submitting applications for the program.