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Student Loan Forgiveness News : White House Approved to Forgive $39 Billion in Student Debt

 STUDENT LOAN FORGIVENESS NEWS

  • Biden administration greenlights $39 Billion Student Debt Forgiveness Plan.
  • Biden Student Loans Forgiveness is for 804,000 student's.
  • Just few weeks before Supreme Court overturned  Joe Biden's plan to cancel up to $20K of student debt's, however Biden administration declared that it would be forgiving student loan for 800K+ student's.
  • This scheme came after Supreme Court's decision in June, which prevented Joe Biden from forgiving $441 billion in loans.

 


WHO WILL BENEFIT FROM THE PLAN?

  • Biden student loans forgiveness is only applicable for borrower who have been making payment for 20-25 years.
  • Immediate forgiveness will be provided to borrowers paying debt from two or more decades, yet still have a balance.
  • Mainly focused on borrower's who repays their loans under Income-Driven Repayment(IDR).
  • Late or Partial payments were also made eligible.
  • Bank Services weren't keeping track of qualifying payments, so credits were given to borrowers for months that didn't count.

STUDENT LOANS THAT QUALIFY :
  • Federal Direct Loans
  • Federal Family Education Loans
  • Parent Plus Loans



MOTIVATION BEHIND THE INITIATIVE :
  • Student loans have become an obstacle to financial stability, home ownership as well as economic growth.
  • By forgiving a portion or full of the loans taken, Biden administration aim borrowers to contribute for economic growth and nations prosperity.
  • Improved mental health, reducing financial stress and anxiety.
IDR( Income-Driven Plan)
Income-Driven Plan is a program that considers your income as well as family size to calculate the affordable monthly payments, which gives a relief from financial stress to borrowers.

The Four IDR Plans are:

a) PAYE - Pay As You Earn
b) REPAYE - Revised Pay As You Earn
c) ICR - Income-Contingent Repayment
d) IBR - Income-Based Repayment

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