The impacted borrowers are people enrolled in the SAVE Plan.
The Biden administration will begin automatically relieving student debt for another 153,000 people on Wednesday, bringing the total number of Americans approved for debt relief to nearly 3.9 million.
President Joe Biden will tout the new debt relief in a speech from Los Angeles, and thousands of people will receive an email from the president informing them that they now qualify for relief.
“Congratulations — all or a portion of your federal student loans will be forgiven because you qualify for early loan forgiveness under my Administration’s SAVE Plan,” the email from the president will read.
The people receiving debt relief beginning Wednesday are those who enrolled in the newest student loan payment plan, called the SAVE Plan, which the Department of Education calls the most affordable plan for the majority of borrowers.
Anyone enrolled in the SAVE Plan who took out less than $12,000 in initial loans and has been paying them down for the past 10 years or more will have them forgiven.
The weirdest part of this round of student loan debt forgiveness is, to enter the lottery, according to the article, you have to switch to the SAVE payoff plan?
I’ve run calculations for several people. Their loan payments would go up from 4x to 8x what they currently are paying if switching to SAVE. So, become loan-repayment-poor in the hope you win the SAVE lottery? Or keep paying off what you can sorta afford without losing the roof over your head?
Hooray for all of those that have won the lottery though! So cool to see people getting relief from that predatory system of uselessness.