The White House announced on Wednesday that President Joe Biden is eliminating an additional $1.2 billion in student loan debt, benefiting 153,000 borrowers who are enrolled in the Saving on a Valuable Education (SAVE) repayment plan.
“The borrowers receiving relief are the first to benefit from a SAVE plan policy that provides debt forgiveness to borrowers who have been in repayment after as little as 10 years and took out $12,000 or less in student loans,” the statement explained. The cancellation was supposed to originally happen July.
“From Day One of his Administration, President Biden vowed to fix the student loan system and make sure higher education is a pathway to the middle class – not a barrier to opportunity,” the statement continued.
It added, “Already, the President has cancelled more student debt than any President in history – delivering lifechanging relief to students and families – and has created the most affordable student loan repayment plan ever: the SAVE plan.”
The Biden administration has announced the forgiveness of student loan debt for approximately 3.9 million Americans, totaling approximately $138 billion. This relief specifically targets individuals who have borrowed less than $12,000 and have been repaying their loans for a minimum of 10 years.
However, CBS News notes, “For every $1,000 borrowed above $12,000, a borrower can receive forgiveness after an additional year of payments, the department added.”
Following Biden’s unsuccessful attempt to cancel a large amount of student loan debt last year, the recent announcement was made. The initial plan aimed to eliminate over $400 billion in student loan debt, however, it was rejected by the Supreme Court. Despite this setback, Biden remains determined to proceed with student loan cancellation.
