President Joe Biden has announced the cancellation of over $1.2 billion in student loan debt for nearly 153,000 borrowers. This significant action is part of the Biden-Harris Administration’s ongoing efforts to alleviate the financial burden of education for American students and their families.
The debt relief will benefit borrowers who are currently enrolled in the Saving on a Valuable Education (SAVE) repayment plan. This policy provides debt forgiveness to borrowers who have been in repayment for as little as 10 years and took out $12,000 or less in student loans.
The Biden-Harris Administration has now approved nearly $138 billion in student debt cancellation for almost 3.9 million borrowers through more than two dozen executive actions. This relief is being provided nearly six months ahead of schedule, demonstrating the administration’s commitment to making higher education a pathway to the middle class rather than a barrier to opportunity.
The borrowers receiving relief are the first to benefit from a SAVE plan policy. For every additional $1,000 a borrower initially borrowed, they will receive relief after an additional year of payments. For instance, a borrower enrolled in SAVE who took out $14,000 or less in federal loans to earn an associate’s degree in biotechnology would receive full debt relief starting this week if they have been in repayment for 12 years.
The U.S. Department of Education has identified nearly 153,000 borrowers who are enrolled in the SAVE plan who will have their debt cancelled starting this week. These borrowers will receive an email today from President Biden informing them of their imminent relief.
