SANTA FE, N.M. — The New Mexico Higher Education Department announced on Monday that 6,270 New Mexicans have benefited from federal student loan forgiveness initiatives under President Joe Biden’s administration, resulting in a total debt discharge of $267.1 million in the state. This significant financial relief comes through President Biden’s SAVE loan forgiveness plan and corrections to the Public Service Loan Forgiveness Plan.
In a notable effort to alleviate the financial burden of higher education, the federal government forgave loans for 5,410 New Mexico borrowers last year due to adjustments in the PSLF Plan, totaling an additional $260.2 million. These efforts form part of a nationwide initiative that saw 806,000 borrowers receive $39 billion in total forgiveness.
“I’m thrilled that the Biden Administration has eliminated the burden of student loans for thousands of New Mexicans who decided to continue their education and have been faithfully making payments for a decade or more,' said Higher Education Secretary Stephanie M. Rodriguez. 'This move will provide these individuals with greater capacity to support their lives and families, contribute to our state economy, and potentially consider further education and career options.'
The federal relief aligns with New Mexico's ambition to become a debtfree college state, complemented by state initiatives like the Opportunity Scholarship, the Lottery Scholarship, and various loan repayment and loan-forservice programs for professionals.
The U.S. Department of Education's recent announcement detailed the discharge of $1.2 billion in federal student loan debt under President Biden’s Saving on Valuable Education (SAVE) Plan. Eligibility for SAVE forgiveness requires enrollment in the SAVE Plan, a minimum of ten years of payments, and an initial borrowing of $12,000 or less for college. The plan also stipulates forgiveness after 20 or 25 years, depending on the level of education financed. On the state level, the New Mexico Higher Education Department provided loan forgiveness to 1,314 New Mexicans last year, totaling $14.9 million through its programs aimed at health care professionals, teachers, Children, Youth, and Families Department employees, public service attorneys, and nurse educators. The recently passed FY25 budget includes over $31 million for these programs and more than $315 million for scholarship programs to support current and future students in reducing their debt burdens.
For more information on federal student loan forgiveness, borrowers are encouraged to visit the Department of Education's website at ed.gov. Details about New Mexico’s loan repayment, loan-for-service, and scholarship programs can be found at hed.nm.gov.