(TheConservativeTimes.org) – The Biden Administration recently said that they’d be rolling out yet another student debt relief solution for many people in the United States.
The new loan program is meant for those who took out smaller loans and have been paying them off for over a decade. It’s intended to help those who have been struggling with little debt for a long time.
To qualify, the person’s loan has to be at $12,000 or below, the individual must have been paying it off for 10 years or more, and must be part of the SAVE program.
They specifically target people who have gone to community college or had some college, didn’t graduate, and still have a debt to pay off from it. Statistics show that this group of people is more likely to have trouble paying off their student loan debt.
“If you’re paying it for 10 years, it’s enough. They’ve done their part and it’s time to release that debt so they can move on and continue to grow in their finances,” said Education Secretary Miguel Cardona.
He continued to state that making education more affordable for people will make it more accessible as well and will encourage more people to seek out higher education. Statistics show that ⅗ of borrowers took out less than $12,000 in loans originally.
Borrowers must be enrolled in SAVE, which is a loan repayment program that expects to have 85% of future community college attendees debt-free within 10 years. About 6.9 million people have joined in on the SAVE program to get help paying their student loans.
“I am proud that my Administration is implementing one of the most impactful provisions of the SAVE plan nearly six months ahead of schedule. This action will particularly help community college borrowers, low-income borrowers, and those struggling to repay their loans,” Biden said about his SAVE Plan.
This plan allows people to pay off their debt in a shorter amount of time, it also allows some people who make less than minimum wage to have payments of $0. It’s said that 3.9 million people who are enrolled in the SAVE Plan have payments of $0.
This is not the end of student loan repayment plans or programs, as another phase will roll out that could cut payment bills in half for some payers.
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