Proposal to Expand Adult Dental Care Announced

$1.2 Billion Cancelled in Student Debt

The Biden Administration recently approved $1.2 billion in student debt cancellation for about 153,000 borrowers who are enrolled in Saving on a Valuable Education (SAVE) repayment plans. SAVE is an income-driven program that determines a borrower’s monthly payment based on their income in an effort to lower financial hardship.

Borrowers who have been enrolled in SAVE for a minimum of 10 years and originally borrowed up to $12,000 for college are eligible for debt forgiveness. Additionally, for every $1,000 borrowed above the $12,000 limit, the borrower can receive debt forgiveness after an additional year of payments.

The U.S. Department of Education (DOE) reports that eligible borrowers will receive an email within the week informing them of debt forgiveness. These borrowers need to take no additional action in order to obtain loan forgiveness. In the following week, borrowers not enrolled in the SAVE plan but who are still eligible for early relief will also be contacted by the DOE.

 

As more information is made available, Creative Benefits will release updates.