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At least some Americans are seeing their student debt wiped away.
The Supreme Court may have struck down President Joe Biden’s one-time forgiveness plan, estimated to cost $400 billion. However, changes to existing programs have allowed for more than $127 billion in debt to be forgiven since Biden took office, far surpassing previous totals.
It’s welcomed relief for millions of borrowers, many of whom had previously applied for forgiveness only to be denied because of byzantine fine-print and other factors. With debt payments restarting in the face of higher living costs, half of surveyed borrowers said they will struggle to make a payment over the next six months. But that’s at least one expense the more than 3.6 million people who’ve had their debt extinguished the past three years won’t have worry about.
This includes Justin La Mort, a public interest attorney in New York City, who had roughly $150,000 of law school debt forgiven after 10 years of payments through the Public Service Loan Forgiveness (PSLF) program.
Applying for forgiveness wasn’t the smoothest process, he said. He still had to wait for his loans to be consolidated, and he had to submit his application multiple times. But now — years after starting his career — he’ll be able to start putting more money towards savings, including for his young children’s college funds.
www.bloomberg.com
The Supreme Court may have struck down President Joe Biden’s one-time forgiveness plan, estimated to cost $400 billion. However, changes to existing programs have allowed for more than $127 billion in debt to be forgiven since Biden took office, far surpassing previous totals.
It’s welcomed relief for millions of borrowers, many of whom had previously applied for forgiveness only to be denied because of byzantine fine-print and other factors. With debt payments restarting in the face of higher living costs, half of surveyed borrowers said they will struggle to make a payment over the next six months. But that’s at least one expense the more than 3.6 million people who’ve had their debt extinguished the past three years won’t have worry about.
This includes Justin La Mort, a public interest attorney in New York City, who had roughly $150,000 of law school debt forgiven after 10 years of payments through the Public Service Loan Forgiveness (PSLF) program.
Applying for forgiveness wasn’t the smoothest process, he said. He still had to wait for his loans to be consolidated, and he had to submit his application multiple times. But now — years after starting his career — he’ll be able to start putting more money towards savings, including for his young children’s college funds.
Biden Has Wiped Away $127 Billion in Student Loan Debt
The president’s signature forgiveness plan was struck down by the Supreme Court but tweaks to existing programs are still bringing some borrowers relief.
www.bloomberg.com
