White House said that hundreds of thousands of residents in Alabama could benefit from up to $20,000 in student loan debt forgiveness.
Student Loan Debt Forgiveness
Student loan debt forgiveness has been one of the issues in the country since the pandemic began. The Biden administration announced in August last year that it would forgive up to $20,000 in student loans for borrowers earning less than $125,000.
The White House said on Friday that hundreds of thousands of eligible residents in Alabama have been fully approved for student loan debt forgiveness. However, the legality of this program still relies on a final court decision, according to a report published in CBS42.
Data that Will Benefit from Student Loan Debt Forgiveness
The Biden administration said that around 373,000 residents in Alabama applied for and are deemed automatically eligible for the student debt relief. Meanwhile, of these applicants, around 238,000 were fully approved and sent to loan servicers for discharge.
This will be a very significant action once the court will release its decision on student loan debt forgiveness. It will benefit around 7.4 percent of the total population in Alabama. The debt relief program was only paused after different lawsuits were filed challenging student loan forgiveness and made their way to the federal court.
Furthermore, the White House said, “These borrowers could be benefitting from the Administration’s program right now were it not for lawsuits brought by elected officials and special interests.”