ATLANTA — The White House announced Friday that certain student loan borrowers will see their remaining federal debt wiped out next month, but there are very specific guidelines.
Those guidelines include that you have to be enrolled in the new SAVE repayment plan and had to have borrowed $12,000 or less. Additionally, financial expert Ellis Liddell said you must have been paying your debt for 10 years.
“Individuals who have 10 years or more and have been paying their debt for 10 years and still can’t make ends meet,” Liddell added.
President Biden’s SAVE program launched last summer after the Supreme Court struck down the president’s original one-time student loan forgiveness program that would have limited debt on a much broader scale.
With millions of people across the country paying off student loans, the White House said Friday's announcement still means a lot for those struggling with day-to-day expenses.
“If you’re making $50,000 or less or you’re making $15 an hour or less, it's almost impossible for you to repay student loans and make it in this economy,” Liddell said.
The White House said almost 7 million people have already signed up for the SAVE program— and almost 4 million have a $0 monthly payment.
Liddell added that those who don’t qualify to have their debt wiped out can still reduce their balance in other ways.
“Make sure if you’re working for a municipality, a university, for a hospital that you apply for this forgiveness because you are the person they are targeting,” Liddell said.
To learn more about the SAVE program and whether you qualify, click here.