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| Reuters |
The government of U.S. President Joe Biden announced on Wednesday that it will forgive the student debt of another 153,000 people and automatically cancel $1.2 billion in loans.
Loan holders whose debt will be forgiven will receive an email from President Joe Biden starting today, the Department of Education said in a statement.
This Wednesday's action is one of the steps the Democratic administration has taken to address student debt after the Supreme Court struck down a massive $400 billion student debt forgiveness plan in June of last year, which would have canceled up to $20,000 in loans for more than 40 million beneficiaries.
Despite his initial plans being thwarted by the Supreme Court, Biden has forgiven student debt for more than 3.9 million people since taking office in January 2021, according to official data.
The 153,000 borrowers eligible for the latest debt forgiveness are those enrolled in the Saving on a Valuable Education (SAVE) repayment plan and have made at least 10 years of payments.
"With today's announcement, we are once again sending a clear message to borrowers who had low balances: if they've been paying for a decade, they've done their part and deserve relief," said Education Secretary Miguel Cardona.
After receiving the email, beneficiaries will not need to take any additional action to receive forgiveness.
The Department of Education, the document states, will continue to identify and cancel loans regularly.