Student loan forgiveness: $5 billion in student debt cancelled for 74,000 borrowers
The White House has announced plans to cancel some $5 billion in student loan debt for some 74,000 borrowers.
Of those, nearly 44,000 of them were teachers, nurses, firefighters or “other individuals who earned forgiveness after 10 years of public service,” with close to 30,000 involving people who have been making payments for at least 20 years “but never got the relief they earned through income-driven repayment plans,” the White House said in a statement.
The most recent loan forgiveness efforts include $1.7 billion for 29,700 borrowers through what’s described as “administrative adjustments” to Income-Driven Repayment plans. Another $3.2 billion in loan forgiveness will go to 43,900 borrowers covered by changes to the Public Service Loan Forgiveness program.
The latest round of forgiveness comes on the heels of another announcement from the administration that it would fast track loan forgiveness through early implementation of the Saving on Valuable Education, or SAVE, plan for those who originally took out $12,000 or less for college
Those who are enrolled in SAVE and are eligible for early forgiveness will have their debts automatically cancelled starting next month, months ahead of schedule, with no action needed, the administration said.