These are the 5 groups of borrowers eligible for Biden’s new student loan forgiveness plan

More
than
25
million
borrowers
owe
more
than
they
originally
borrowed
in
federal
student
loans
because
of
accrued
interest
charges,
according
to
the
Biden
administration.

As
part
of
this
plan,
those
borrowers
could
get
up
to

$20,000
of
unpaid
interest
on
their
debt
forgiven,
regardless
of
income.
Certain
low-
and
middle-income
borrowers,
if
they’re
enrolled
in
an
income-driven
repayment
plan, could
have
the
entire
interest
balance
that
has
accrued
on
their
federal
loan
debt
since
they
entered
repayment
canceled.

Anyone
enrolled
in
the
Saving
on
a
Valuable
Education
Plan,
or
SAVE,
or
any
other
income-driven
repayment
plan
would
be
eligible
without
having
to
apply.

Consumer
advocates
and
borrowers
have
complained
that
the
government’s
debt
forgiveness
programs
can
be
hard
to
know
about
and
to
access.

Biden’s
new
plan
is
also
expected
to
cancel
debt
for
borrowers
who
are
otherwise
eligible
for
relief
through

Public
Service
Loan
Forgiveness
or
SAVE
or
other
income-driven
repayment
plans,
but
have
not
successfully
applied.

The
Department
of
Education
will review
the
accounts
of
borrowers to
identify
who
could
be
eligible
for
this
type
of
relief,
which
would
go
into
effect
automatically, the
administration
said.

Another
2.5
million
borrowers
would
benefit
from
the
forgiveness
of
student
loans
that
have
been
held
for
two
decades
or
longer.

Borrowers
with
undergraduate
debt
would
qualify
for
forgiveness
if
they
first
entered
repayment
on
or
before
July
1,
2005,
and
borrowers
with
any
graduate
school
debt
would
qualify
if
they
first
entered
repayment
on
or
before
July
1,
2000,
the
administration
said.
Both
direct
loans
and
consolidated
loans
are
eligible
for
relief. 

Graduates
with
loans
from “low-value”
institutions
or
programs
would
also
be
eligible
for
loan
forgiveness.

Under
this
part
of
the
plan,
borrowers
who
attended
institutions
or
programs
that
closed
or “failed
to
provide
sufficient
value”
—
meaning
that
graduates
were
left
no
better
off
than
someone
with
a
high
school
diploma
—
could
apply
for
relief.

“Low-value”
institutions
are
generally
colleges
that
lost
their
eligibility
to
participate
in
the
Federal
Student
Aid
program
or
were
denied
recertification
because
they
cheated
or
took
advantage
of
students,
according
to
the
Biden
administration.

Along
these
same
guidelines,
the
Education
Department
has
already
canceled
the
student
loans
of

more
than
1
million
students
who
attended

certain
for-profit
schools,
including
Corinthian
Colleges
and
ITT
Technical
Institute.

While

harder
to
quantify, “millions
of
borrowers
could
be
eligible
for
relief
if
they
are
experiencing
hardship
in
their
daily
lives
that
prevent
them
from
fully
paying
back
their
loans
now
or
in
the
future,”
the
administration
said.
This
piece
of
the
plan
would
cancel
student
debt
for
borrowers
who
are
at
high
risk
of
defaulting
on
their
student
loans
or
families
burdened
with
other
expenses
like
medical
debt
or
child
care.

With
higher
debt
burdens,
Black
and
Latino
borrowers
will
benefit
disproportionately
from
this
relief,
the
White
House
also
said.

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