The impacted borrowers are people enrolled in the SAVE Plan.
The Biden administration will begin automatically relieving student debt for another 153,000 people on Wednesday, bringing the total number of Americans approved for debt relief to nearly 3.9 million.
President Joe Biden will tout the new debt relief in a speech from Los Angeles, and thousands of people will receive an email from the president informing them that they now qualify for relief.
“Congratulations — all or a portion of your federal student loans will be forgiven because you qualify for early loan forgiveness under my Administration’s SAVE Plan,” the email from the president will read.
The people receiving debt relief beginning Wednesday are those who enrolled in the newest student loan payment plan, called the SAVE Plan, which the Department of Education calls the most affordable plan for the majority of borrowers.
Anyone enrolled in the SAVE Plan who took out less than $12,000 in initial loans and has been paying them down for the past 10 years or more will have them forgiven.
It’s simply more cost effective this way. He gets more people out of debt for the same value of money.
In other words form an illusion he’s helping without actually having to help.
Yes technically he’s helping but he’s helping the people that need help the least. It’s like handing out stimulus checks to people who are already cash rich.
In the end it’s just a big publicity stunt to secure votes. This isn’t what real help looks like.
If the people are indepted then they’re clearly not rich, just because they don’t have as much of a dept as some other people. And yes, of course it is to secure votes. Welcome to politics 101. The same reason why no country on Earth actually does any meaningful shit against climate change. Because no one would vote for you once they realize what that would actually entail.