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North Dakotans to receive student loan forgiveness

Figures from the Biden-Harris administration show 220 North Dakota borrowers will save $1.6 million under President Joe Biden’s student loan forgiveness plan.

The administration published a state-by-state breakdown of the nearly 153,000 borrowers who are receiving $1.2 billion in forgiveness under Biden’s Saving on a Valuable Education (SAVE) Plan. Servicers started processing this forgiveness Friday.

Borrowers in every single state across the country and territories will have their loans canceled under this action. President Biden emailed borrowers in all 50 states plus territories on Wednesday notifying them that they were approved for forgiveness and would not need to take any further action to receive relief. Servicers have begun processing the forgiveness and borrowers will see their loans forgiven on their accounts in the coming weeks. Moving forward, the U.S. Department of Education will continue to identify and discharge other borrowers enrolled in SAVE who are eligible for this forgiveness on a regular basis.

For a borrower to be eligible for this forgiveness they must be enrolled in the SAVE Plan, have been making at least 10 years of payments and have originally taken out $12,000 or less for college. For every $1,000 borrowed above $12,000, a borrower can receive forgiveness after an additional year of payments.

All borrowers on SAVE receive forgiveness after 20 or 25 years, depending on whether they have loans for graduate school. The benefit is based upon the original principal balance of all federal loans borrowed as a student to attend school, not what a borrower currently owes or the amount of an individual loan.

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