Biden Administration Accelerates Student Debt Cancellation for 153,000 Borrowers

President Biden has announced a significant step forward in student debt relief, with the approval of $1.2 billion in cancellations for nearly 153,000 borrowers under the Saving on a Valuable Education (SAVE) repayment plan. This action is part of the Biden-Harris Administration's broader efforts to alleviate student debt, marking nearly $138 billion in relief for about 3.9 million Americans through executive actions. The relief targets those who have been in repayment for at least a decade and initially borrowed $12,000 or less, with provisions for additional relief based on the amount borrowed.

This initiative, implemented nearly six months ahead of schedule, underscores the administration's commitment to making higher education more accessible and less of a financial burden. It builds on the success of the SAVE plan, which has already seen over four million borrowers benefit from a $0 monthly payment. Furthermore, the administration has made strides in increasing Pell Grants, reforming the Public Service Loan Forgiveness program, and proposing new pathways for debt relief following the Supreme Court's decision.

The Department of Education will reach out to eligible borrowers not currently enrolled in the SAVE Plan, encouraging them to take advantage of this opportunity for early debt relief. This move is particularly beneficial for community college students and those with smaller loans, with 85% expected to be debt-free within 10 years under the SAVE plan. As the administration continues to fight for broader debt relief, this early forgiveness initiative represents a significant milestone in their efforts to support students and former students across the nation.