President Biden has unveiled a landmark initiative aimed at providing significant relief to student loan borrowers, announcing the approval of $1.2 billion in student debt cancellation for almost 153,000 borrowers currently enrolled in the Saving on a Valuable Education (SAVE) repayment plan. This move marks a major milestone in the Biden-Harris Administration’s ongoing efforts to address the student debt crisis and make higher education more accessible.
The SAVE plan, launched by the Biden administration, offers a lifeline to borrowers struggling with student loan debt by providing a pathway to debt forgiveness. Under this plan, borrowers who have been in repayment for at least 10 years and took out $12,000 or less in student loans are eligible for relief. Additionally, for every additional $1,000 borrowed, borrowers will receive relief after an additional year of payments.
Today’s announcement comes as a welcome relief to millions of Americans burdened by student loan debt, as President Biden reaffirms his commitment to fixing the broken student loan system and ensuring that higher education remains a pathway to the middle class, rather than a barrier to opportunity.
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, marking a historic milestone in the fight against student loan debt. This unprecedented level of debt relief is providing much-needed breathing room for borrowers, allowing them to pursue their dreams and achieve financial stability.
The implementation of the SAVE plan’s debt forgiveness provision ahead of schedule demonstrates the administration’s dedication to delivering meaningful relief to borrowers in a timely manner. Borrowers enrolled in the SAVE plan will receive an email from President Biden informing them of their imminent relief, with nearly 153,000 borrowers set to benefit from this initiative.
The SAVE plan’s early forgiveness provisions will particularly benefit community college and other borrowers with smaller loans, putting them on track to become debt-free faster than ever before. Under the SAVE plan, 85 percent of future community college borrowers are projected to be debt-free within 10 years, offering hope to those struggling under the weight of student loan debt.
In addition to student debt cancellation, the Biden-Harris Administration has taken a series of historic steps to improve the student loan program and make higher education more affordable for all Americans. These efforts include achieving the largest increases in Pell Grants in over a decade, fixing the Public Service Loan Forgiveness program, and pursuing alternative paths to deliver debt relief to borrowers.
As President Biden continues to champion student debt relief and higher education reform, millions of Americans are poised to benefit from these transformative initiatives. With each action taken, the administration is making progress towards a future where access to education is not determined by one’s financial circumstances, but by their determination to succeed.