• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Who’s eligible for forgiveness?

Biden is persisting in his piecemeal approach to student loan forgiveness, after the Supreme Court struck down his original plans last year.

About 206,800 people who originally borrowed $12,000 or less and are enrolled in the new SAVE plan will receive the majority of relief, while an additional 65,000 enrolled in repayment plans will see reductions in the amounts they owe through “administrative adjustments.”

And another 4,600 borrowers are receiving relief through changes to Public Service Loan Forgiveness (PSLF).

The Education Department says these borrowers should expect to be notified by email, starting today and see their relief processed in the coming weeks.

Don't miss

Republican attorneys are pushing to axe the SAVE plan

Biden is still facing loud opposition from Republicans who have called his latest plans to forgive student debt a ploy to buy support from young voters ahead of this November’s election.

“The administration is tone deaf. There’s no other way to put it,” said Education and the Workforce Committee chairwoman Virginia Foxx (R-NC) in a statement, calling Biden’s plans an “illegal loan scheme.”

“What is absolutely maddening is that the administration is STILL not doing its job and instead focusing on its student loan shenanigans. “Enough is enough, Mr. President.”

In the meantime, 18 states are suing the Biden administration over the SAVE program in two separate lawsuits, claiming it undermines a separate cancellation program that promotes careers in public service.

That said, the lawsuits don’t address what would happen to borrowers who have already seen their debts wiped through the SAVE program. A court document filed by Kansas’ attorney general says it’s “unrealistic to think that any loan forgiveness that occurs during this litigation will ever be clawed back,” reports the Associated Press.

What to read next

Serah Louis is a reporter with Moneywise.com. She enjoys tackling topical personal finance issues for young people and women and covering the latest in financial news.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.