When will Biden Student Loan Forgiveness Scheme Start?

When will Biden Student Loan Forgiveness Scheme Start President Joe Biden and postgraduate students are seen in this image.
When will Biden Student Loan Forgiveness Scheme Start (Image Credit - Unsplash.com and Livemint.com)

When will Biden Student Loan Forgiveness Scheme Start?: On Friday, July 14, 2023, the US Department of Education announced that it would automatically forgive the student loans of more than 8,00,000 American borrowers.

How much relief will this give to the student | US student debt amount relief

A total of $39 billion is expected to be spent on this loan scheme. That means a total debt of 39 billion US dollars will be freed. The Biden government department said the move would address administrative issues in the income-driven repayment system.

Read Also: What is PayPal LoanBuilder? Requirements, Good & Bad, Etc.

Federal student loan borrower forgiveness eligibility after 20 or 25 years of payments?

The US government said that whoever has been paying the loan for more than 20 years should be eligible for relief. Vice President Kamala Harris said all these things in her statement. The Vice President further said that we will not stop here. Last month, President Joe Biden announced that we were pursuing an alternative route to providing relief through the Higher Education Act.

In which, we have finalized our new income-driven repayment plan. This scheme will halve the monthly payment for graduation loans. She added that our administration wants to ensure that Americans receive a high-quality postsecondary education without burdening themselves with unmanageable student debt.

Read Also: Is ChatGPT Stock Trading Make You Money in 2023?

Court Decision on Biden Student Loan Forgiveness 2023

Along with this, let us tell you that in one of its decisions last month, the US Supreme Court rejected President Joe Biden’s plan for loan forgiveness of up to $ 20,000 for 43 million federal student loan borrowers. After this decision of the Supreme Court, the major campaign promises of the government were dealt a severe blow.

Soon after the decision, Joe Biden said that his administration would seek more ways to provide debt relief. Today’s decision has definitely closed one way but we are going to try another, he said that we are asking the education department to prepare a new scheme for loan waiver on the basis of the Higher Education Act.

He promised that this proposal would be correct under the law and at the same time he also said that this new proposal will take more time. But he has not yet announced the features of this new scheme.

Read Also: What is Arbitrage Trading 2023, How to Do | Advantages and Disadvantages