Biden just erased $1.2B in student loans. Yours could be next
By Eliza Haverstock | NerdWallet
More than 150,000 borrowers who signed up for the newest student loan repayment plan — Saving on a Valuable Education (SAVE) — just found out President Joe Biden will forgive their remaining debt. If you weren’t one of the lucky borrowers, it’s not too late to join their ranks.
“This is the first announcement, hopefully, in a slew of announcements,” says Amy Czulada, outreach and advocacy manager of the Student Borrower Protection Center, a nonprofit student loan borrower advocacy organization, of the forgiveness email affected borrowers received.
The Education Department has not shared a timeline for future SAVE forgiveness announcements but said it will discharge eligible loans on a “rolling basis” going forward.
You must enroll in SAVE and meet two key criteria to qualify for debt forgiveness now:
- Borrowed $12,000 or less in federal student loans.
- Spent at least 10 years in repayment, including the pandemic pause and other time counted under the IDR account adjustment.
If you meet these requirements, Czulada says, “Please enroll — this could really change your life in a matter of minutes.” Private student loans are not eligible for the SAVE program or federal student loan forgiveness.