Why student loan borrowers need to check their email

Student loan borrowers may see some relief as the US Department of Education will be sending emails starting Thursday, August 1, specifying potential relief and opt-out opportunities.

Wealth! Anchor Brad Smith breaks down what students, borrowers, and parents with federal student loans need to know about this anticipated relief plan from the Biden administration.

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This post was written by Nicholas Jacobino

Video Transcript

Turning now to a critical financial topic for millions of Americans.

Loan forgiveness.

Americans with outstanding federally held student loans should check their inbox starting tomorrow, August 1st for an email from the Department of Education regarding debt relief.

The Biden administration is hoping to bring relief to millions of Americans this fall, and the email will provide borrowers with updates and inform folks that they have until the end of August to call their servicer and opt out.

If they don't want the relief.

Now, what does this relief look like?

Well, the rules are not yet finalised, and getting an email doesn't guarantee specific borrowers will be eligible.

But if the Biden administration's proposed rules are finalised, more than 30 million people could be eligible, including borrowers who owe more now than they did at the start of repayment.

Borrowers who have been in repayment for decades now and those who are otherwise eligible for loan forgiveness but have not yet applied and also those enrolled in low financial value programmes.

Overall, President Biden's efforts towards student loan forgiveness have hit some legal roadblocks.

Biden's original plan to provide up to 20,000 dollars in relief per borrower was struck down by the Supreme Court back in 2023.

The president later introduced the Safe Plan and income driven repayment plan to help reduce your monthly bill.

That plan has also faced opposition into court cases, and the Department of Education has placed millions of safe plan borrowers into forbearance until a final ruling is made.

So refresh your inbox tomorrow and we'll have some more updates for this on on this for you on what?