(WXYZ) — More than 6,000 Michiganders will have their student debut forgiven under the latest forgiveness plan from President Joe Biden this week.
According to the White House, 6,040 Michiganders were eligible to have their student debt forgiven. That debt totals $47 million, according to the White House.
The Biden administration announced Wednesday it would forgive $1.2 billion in student loan debt for borrowers enrolled in a certain income-driven repayment plan – the Saving on a Valuable Education (SAVE) Plan.
Eligible borrowers must have made at least 10 years of payments after having taken out federal loans of $12,000 or less for college. Those with balances of more than $12,000 may also be eligible once they have made another year's worth of payments for every $1,000 over the $12,000 limit.
All eligible borrowers enrolled under a SAVE Plan have their debt forgiven after 20 or 25 years, depending on whether they borrowed money for graduate school.
Borrowers who are eligible will receive emails from the administration and won't have to take any more action to get their benefits. Loan servicers will process their discharged loans automatically.
