Biden Announces Student Loan Cancellation for Eligible Borrowers, US

Certain borrowers will be eligible to have the rest of their student loans cancelled as soon as next month, the Biden administration announced. Starting in February, borrowers who took out less than $12,000 in loans and have been in repayment for 10 years will get their remaining loans cancelled as long as they are enrolled in the Saving on a Valuable Education plan, President Joe Biden said. The SAVE plan is arriving six months ahead of schedule, particularly benefiting community college borrowers, low-income borrowers, and those struggling to repay their loans. It is estimated that nearly 7 million borrowers are currently enrolled in the SAVE plan, with 3.6 million already having their loans cancelled. This move follows the Supreme Court’s decision last year, which found that the president lacks the authority to broadly cancel student loan debt. President Biden has long advocated for the cancellation of student debt and this action shows his commitment to fulfilling this campaign promise. Several political figures, including Sen Majority Leader Chuck Schumer and Sen Elizabeth Warren, have praised the announcement. Borrowers who are eligible are encouraged to enroll for the SAVE plan at studentaid.gov.