- ORIGINAL NEWS
Biden administration to forgive certain student loan borrowers’ balances early
- SUMMARY
The Biden administration announced a new initiative to forgive student loans for those who have been in repayment for at least a decade and originally borrowed $12,000 or less.
To qualify, borrowers must enroll in the administration’s SAVE plan.
This relief may be available as early as next month.
The administration aims to notify eligible borrowers through an outreach and email campaign and streamline the process for debt cancellation.
This initiative targets borrowers who have struggled with loan payments and seeks to alleviate financial distress and provide peace of mind.
While the usual forgiveness period is 20 or 25 years, the 10-year period applies to those with smaller loans in undergraduate or graduate studies.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“The Biden administration announced on Friday it would soon begin forgiving the student loans of borrowers who have been in repayment for a decade or more and originally took out $12,000 or less.”
“Borrowers enrolled in SAVE who are eligible for early forgiveness will have their debts cancelled immediately starting next month, with no action on their part.”
Negative
“Under the SAVE plan, the usual timeline for student loan borrowers to get forgiveness is 20 years or 25 years.”
“Giving borrowers with smaller loans a faster path to being debt free will help many borrowers avoid financial distress and have peace of mind.”