Gadget Insiders
  • Android
  • Apple
  • Gaming
  • iOS
  • PC
  • Phones
  • Playstation
  • Reviews
  • Samsung
  • Xbox
No Result
View All Result
  • Android
  • Apple
  • Gaming
  • iOS
  • PC
  • Phones
  • Playstation
  • Reviews
  • Samsung
  • Xbox
No Result
View All Result
Gadget Insiders
No Result
View All Result
Home News

Biden Administration’s $7,700,000,000 Relief Measures, Easing the Burden for Student Loan Borrowers

Prashant Chaudhary by Prashant Chaudhary
May 27, 2024
in News
Reading Time: 3 mins read
0
Biden Administration's $7.7 Billion Relief Measures, Easing the Burden for Student Loan Borrowers

The Biden administration has taken significant strides in providing relief to student loan borrowers, a welcome move as many grapple with the repercussions of America’s colossal $1.6 trillion federal student loan debt. This initiative marks a significant push forward, particularly following the Supreme Court’s decision in 2023 which blocked President Biden’s initial forgiveness proposal.

In a notable development, the Biden administration recently announced a substantial $7.7 billion in forgiveness allocated for undergraduate loan holders. This announcement precedes further planned reductions set for July, reflecting a continuous effort to alleviate the financial burden on nearly 43.2 million borrowers nationwide.

Big Break for Students: How the New $7.7 Billion Loan Forgiveness Plan Affects You
President Biden speaking about student loan forgiveness in the Roosevelt Room, White House.

Biden Administration’s $7.7 Billion Loan Debt Relief

On a recent Wednesday, the Biden administration declared that 160,500 borrowers would benefit from the newly approved $7.7 billion loan debt relief. This adjustment will escalate the total amount of debt forgiven to $167 billion, impacting 4.75 million student loan borrowers, or approximately one in every ten debt holders.

Big Break for Students: How the New $7.7 Billion Loan Forgiveness Plan Affects You
Focused student reviewing their loan balance online after recent forgiveness announcements.

In particular, this round of debt relief will cater to three primary groups of borrowers:

  • Public Service Loan Forgiveness (PSLF): A staggering $5.1 billion is set aside for 66,900 borrowers employed in public service or non-profit sectors.
  • SAVE Plan Participants: $613 million is directed towards 54,300 borrowers who have enrolled in the Biden administration’s SAVE Plan, targeting those who originally borrowed $12,000 or less for post-secondary education.
  • Income-driven Repayment (IDR) Corrections: Additionally, $1.9 million will aid 39,300 borrowers affected by the misuse of forbearance by loan servicers, offering forgiveness under income-driven repayment fixes.

Impending Reductions and How to Benefit

Come July, further changes will reduce the expected monthly payment percentages based on borrowers’ income. For instance, those on the SAVE Plan currently contribute 10% of their discretionary income each month. However, this rate will be halved to 5%, effectively slicing monthly payments for many.

For a clearer perspective, consider a single-person household with an annual gross income of $50,000. Under the current setup, the discretionary income calculated would lead to a monthly payment of approximately $134. But with the impending changes, this payment will reduce to about $67.

These Biden administration’s updates are particularly beneficial for borrowers with undergraduate loans under the SAVE Plan, while those with both undergraduate and graduate debts will see varied adjustments.

Biden doesn't have authority to cancel student debt.

Supreme Court told him NO.
Congress told him NO.
But he does it anyway.
He's VIOLATING Separation of Powers.

Nearly 2/3 of Americans didn't go to college & MILLIONS paid-off/never had loans. This is unconstitutional & unfair. pic.twitter.com/pM8IKHufuo

— Congressman Byron Donalds (@RepDonaldsPress) May 25, 2024

Eligibility and Enrollment

Eligibility notifications for the $7.7 billion in relief will be dispatched via email, with actual account adjustments following a few weeks later. Borrowers can verify their status and eligibility by logging into their SAVE Plan account online.

Big Break for Students: How the New $7.7 Billion Loan Forgiveness Plan Affects You
A happy graduate celebrating debt relief under the new student loan forgiveness plan.

Enrollment in a SAVE Plan is available through studentaid.gov/idr. These plans are tailored based on a borrower’s income and family size, offering more manageable payment terms compared to standard options. Among the benefits, SAVE Plans eliminate all remaining monthly interest on loans after full scheduled payments, preventing the accumulation of further debt through interest.

Who Can Sign Up?

Eligibility for SAVE Plans extends to federal student borrowers with direct loans. This excludes private loans and Parent PLUS loans unless they have been consolidated. Essential eligible loans under this program include:

  • Direct Subsidized and Unsubsidized Loans
  • Direct PLUS Loans made to graduate or professional students
  • Direct Consolidation Loans, excluding those covering Parent PLUS loans
  • Consolidated loans from the Federal Family Education Loan Programs, such as Federal Perkins Loans and Federal Stafford Loans

In conclusion, these ongoing efforts by the Biden administration represent a robust attempt to ease the financial strain of student loans. As these programs unfold, eligible borrowers should stay informed and proactive to maximize the benefits of these relief opportunities.

Tags: Biden Administrationdebt forgivenessloan borrowersLoan Debtloan reliefprofessional studentsPSLFSAVE planStudent Loansundergraduate loans

TRENDING

GitHub Launches New AI Agent to Fix Bugs, Add Features, and Revolutionize Coding for Developers---

GitHub Launches New AI Agent to Fix Bugs, Add Features, and Revolutionize Coding for Developers

May 23, 2025
Apple Delays Major AirPods Updates Until 2026, No New AirPods Pro in 2025

Apple Delays Major AirPods Updates Until 2026, No New AirPods Pro in 2025

May 23, 2025
Apple to Let EU Users Switch from Siri to Google Assistant or AlexaApple to Let EU Users Switch from Siri to Google Assistant or Alexa

Apple to Let EU Users Switch from Siri to Google Assistant or Alexa

May 23, 2025
Take-Two CEO Confirms Short Delay for GTA 6, No Further Postponements Expected

Take-Two CEO Confirms Short Delay for GTA 6, No Further Postponements Expected

May 23, 2025
Bluesky Tests New 'Live' Feature to Link Sports and Livestreams Directly from Profiles

Bluesky Tests New ‘Live’ Feature to Link Sports and Livestreams Directly from Profiles

May 23, 2025
iPhone 17 Air Leaked Battery and Weight Details Spark Excitement Ahead of Launch

iPhone 17 Air – Leaked Battery and Weight Details Spark Excitement Ahead of Launch

May 23, 2025
Qualcomm Snapdragon 8 Elite 2: What to Expect from the 2025 Flagship SoC

Qualcomm Snapdragon 8 Elite 2 – What to Expect from the 2025 Flagship SoC

May 23, 2025
Epic Games Takes Apple to Court to Bring Fortnite Back to iOS Store

Epic Games Takes Apple to Court to Bring Fortnite Back to iOS Store

May 23, 2025
  • Contact Us
  • Terms
  • Privacy
  • Copyright
  • About Us
  • Fact Checking Policy
  • Corrections Policy
  • Ethics Policy

Copyright © 2023 GadgetInsiders.com

No Result
View All Result
  • Android
  • Apple
  • Gaming
  • iOS
  • PC
  • Phones
  • Playstation
  • Reviews
  • Samsung
  • Xbox

Copyright © 2023 GadgetInsiders.com.