- ORIGINAL NEWS
These are the 5 groups of borrowers eligible for Biden’s new student loan forgiveness plan
- SUMMARY
**President Biden’s Student Loan Relief Plan: A Breakdown** President Biden has announced a new plan to forgive student loans, potentially benefiting up to 30 million people.
Here’s a breakdown of who qualifies for this relief: **Forgiven Interest** Borrowers who owe more than they originally borrowed due to accrued interest charges are eligible for up to $20,000 in interest forgiveness.
**Income-Driven Repayment Plans** Borrowers enrolled in income-driven repayment plans may have their entire unpaid interest balance cancelled.
To be eligible, you must be enrolled in the Saving on a Valuable Education Plan (SAVE) or another income-driven plan.
**Public Service Loan Forgiveness** Borrowers eligible for loan forgiveness through Public Service Loan Forgiveness or other income-driven repayment plans, but have not successfully applied, may have their loans forgiven under this plan.
The Department of Education will automatically review accounts to identify those eligible.
**Long-Term Debt** Borrowers who have had student loans for 20 years or more may have their loans forgiven.
Those with undergraduate debt must have entered repayment before July 1, 2005, while those with graduate school debt must have entered repayment before July 1, 2000.
**Low-Value Institutions** Borrowers with loans from “low-value” institutions or programs that closed or failed to provide sufficient value could apply for relief.
Low-value institutions are often those that cheated or took advantage of students.
**Hardship** Borrowers experiencing hardship in their daily lives, preventing them from fully repaying their loans, may also be eligible for loan forgiveness.
This includes individuals at high risk of defaulting or those burdened with other expenses like medical debt or child care.
**Benefits for Black and Latino Borrowers** Due to higher debt burdens, Black and Latino borrowers are expected to benefit disproportionately from this relief.
It’s important to note that this plan is not yet in effect and is likely to face legal challenges.
However, it represents a significant step towards addressing the student loan debt crisis affecting millions of Americans.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“President Joe Biden announced a new student loan forgiveness plan Monday, which could benefit as many as 30 million people, according to estimates.”
“Biden’s Plan B targets five specific groups of borrowers.”
Negative
“Consumer advocates and borrowers have complained that the government’s debt forgiveness programs can be hard to know about and to access.”
“Along these same guidelines, the Education Department has already canceled the student loans of more than 1 million students who attended certain for-profit schools, including Corinthian Colleges and ITT Technical Institute.”