The Biden Administration recently unveiled a plan to provide an additional $39 billion in loan forgiveness for student loan borrowers. This is in addition to the $1.9 trillion American Rescue Plan, which was signed into law in March 2021. The new plan is expected to provide relief to millions of borrowers who are struggling to pay off their student loan debt.
The new plan will provide an additional $39 billion in loan forgiveness for borrowers who have federal student loans. This includes both Direct Loans and Federal Family Education Loans (FFEL). The plan will also provide an additional $10 billion in loan forgiveness for borrowers who have private student loans.
The plan will provide loan forgiveness for borrowers who have been in repayment for at least 20 years. This means that borrowers who have been in repayment for at least 20 years will have their remaining loan balance forgiven. Borrowers who have been in repayment for less than 20 years will have their remaining loan balance reduced by up to $10,000.
The plan will also provide loan forgiveness for borrowers who have been in default on their student loans. Borrowers who have been in default for at least three years will have their remaining loan balance forgiven. Borrowers who have been in default for less than three years will have their remaining loan balance reduced by up to $10,000.
The plan will also provide loan forgiveness for borrowers who have been in deferment or forbearance on their student loans. Borrowers who have been in deferment or forbearance for at least three years will have their remaining loan balance forgiven. Borrowers who have been in deferment or forbearance for less than three years will have their remaining loan balance reduced by up to $10,000.
The Biden Administration’s plan is expected to provide relief to millions of borrowers who are struggling to pay off their student loan debt. The plan is also expected to help reduce the amount of student loan debt in the United States, which currently stands at over $1.7 trillion.
The plan is expected to be implemented in the coming months. Borrowers who are eligible for loan forgiveness should contact their loan servicer to learn more about the program and how to apply.
