PPP Loan recipients will see a $1.6 trillion loan forgiveness program that has been delayed for years, but it will start to be rolled out in earnest this year.
President Obama announced the new student loan program in February.
He touted it as the largest loan forgiveness plan in history.
The $1,600 annual forgiveness will provide $400 per borrower for the first time in history for federal student loans, according to a White House press release.
The $1 trillion plan will also be more generous for borrowers who have paid off their loans in full and in full.
The White House also said it will extend a $100 per borrower loan forgiveness offer to borrowers who are enrolled in an approved program, and offer an additional $500 per borrower forgiveness for borrowers whose income is above 133 percent of the poverty line.
The program will include $1 billion for low-income borrowers who don’t qualify for the federal loan forgiveness, the release said.
But that $1bn loan forgiveness is a drop in the bucket compared to the $5 trillion that PPP loan recipients have paid in interest since the beginning of the crisis.
The president’s announcement came just weeks after Congress voted to extend the existing PPP program for another two years.
That move was largely hailed by the PPP lenders, who are also the recipients of the $1tn stimulus bill.