White House Announces Massive Student Loan Forgiveness
Biden-Harris Administration Approves $58 Billion in Additional Relief
New Policies to Take Effect in 2025 if Finalized
On August 24th, the White House announced a plan to forgive up to $20,000 in federal student loans for many borrowers. The Biden-Harris Administration also approved $58 billion in additional student loan debt relief for 777,000 borrowers.
This move is a surprise and comes as the Department of Education continues to finalize new income-driven repayment plans through a negotiated rulemaking process. If changes are made as a result of this process, new policies will go into effect on July 1, 2025, provided they are finalized by that date.
The Department will implement the remaining full benefits of the SAVE Plan in July 2024. This plan will further reduce monthly payments from student loans for borrowers who meet certain income requirements.
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