April 25, 2024

Biden Accelerates Student Loans Plan, Will Start Canceling for Some Borrowers in February

The Biden Administration announced on Friday that they have bumped up the start date of their “most affordable student loan repayment plan ever.”

Starting in February, student loan borrowers on the SAVE plan who have taken out less than $12,000 and have been in the repayment process for 10 years will have their debate canceled out “immediately.”

“This action will particularly help community college borrowers, low-income borrowers, and those struggling to repay their loans,” Biden said. “And, it’s part of our ongoing efforts to act as quickly as possible to give more borrowers breathing room so they can get out from under the burden of student loan debt, move on with their lives and pursue their dreams.”

There are reportedly 6.9 million borrowers enrolled in the SAVE plan and 3.9 million borrowers have $0 monthly payments, according to the White House.

The administration also mentioned that fixes to the Public Service Loan Forgiveness program will be included to aid public service workers in achieving debt relief.

“In the wake of the Supreme Court’s decision on our student debt relief plan, we are continuing to pursue an alternative path to deliver student debt relief to as many borrowers as possible as quickly as possible,” Biden said. “I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams.”

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