Biden cancels student loan debt for 150,000+ borrowers

Biden student loan debt cancellation overview: 

• Who: The Biden administration approved $1.2 billion in student loan forgiveness last week for qualifying borrowers enrolled in its Saving on a Valuable Education (SAVE) student loan repayment plan. 
• Why: The White House implemented a provision in the SAVE repayment plan that allows a borrower’s debt to be forgiven if they took out less than $12,000 in loans and have been repaying them for at least 10 years. 
• Where: The debt cancellation affects qualifying student loan borrowers nationwide. 

President Joe Biden approved $1.2 billion in student loan debt forgiveness last week for nearly 153,000 borrowers enrolled in a repayment plan that forgives those who took out $12,000 or less in student loans and have been repaying for at least 10 years. 

The Biden administration originally planned to implement the provision in July 2024, according to the White House, which said it instead decided to provide the student loan relief almost six months ahead of schedule. 

“This shortened time to forgiveness will particularly help community college and other borrowers with smaller loans and put many on track to being free of student debt faster than ever before,” the White House said. 

The student loan relief will benefit qualified borrowers enrolled in the administration’s Saving on a Valuable Education (SAVE) repayment plan, which was launched last year and calculates the monthly payments on a borrower’s income and family size. 

White House says 7.5 million student loan borrowers enrolled in SAVE repayment plan

The SAVE repayment plan ensures borrowers that their balances will not grow because of interest as long as monthly payments are being made, according to the White House. 

The SAVE repayment plan has 7.5 million borrowers enrolled, according to the White House, of which 4.3 million have no monthly payment. 

Education Secretary Miguel Cardona told reporters last week that the student loan forgiveness will occur automatically, NBC News reports. 

“These are historic efforts that reflect the president’s commitment, again, to deliver as much relief as possible to as many borrowers as possible as quickly as possible,” Cardona said, as reported by NBC News. 

President Biden announced in October that his administration intended to forgive $9 billion in student loan debt, providing relief for 125,000 borrowers. 

Has your student loan debt been forgiven? Let us know in the comments.

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