In a move that has been eagerly anticipated by student loan borrowers across the country, President Biden has once again demonstrated his commitment to tackling the student debt crisis by canceling an additional $1.2 billion in student loan debt for over 150,000 borrowers. This executive action, part of the Savings on Valuable Education (SAVE) plan, comes as a welcome relief for those burdened by the weight of student loans. His latest move was announced this Wednesday morning.
The SAVE plan policy targets borrowers who have been in repayment for at least 10 years and hold $12,000 or less in student loan debt. For those with larger debts, relief will be provided incrementally, with an additional year of payments required for every additional $1,000 borrowed. This targeted approach aims to alleviate the financial strain on borrowers, particularly those from community colleges and similar institutions.
The White House emphasized that this accelerated timeline for debt forgiveness will benefit a significant portion of future community college borrowers, with 85% expected to be debt-free within a decade. President Biden’s swift action in canceling student debt underscores his administration’s commitment to making higher education accessible and affordable for a great majority of Americans.
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Since taking office, President Biden has canceled nearly $138 billion in federal student loans for close to 3.9 million borrowers, all without the need for congressional approval. This latest round of debt relief follows previous initiatives, including the Public Service Loan Forgiveness program, income-driven repayment improvements, and loan forgiveness for borrowers with total and permanent disabilities.
Education Secretary Miguel Cardona praised the administration’s efforts, stating, “With today’s announcement, we are once again sending a clear message to borrowers who had low balances: if you’ve been paying for a decade, you’ve done your part, and you deserve relief.”
The Department of Education will be reaching out to eligible borrowers to ensure they are aware of the relief options available to them.
As President Biden continues to fulfill his campaign promises to student loan borrowers, the impact of these debt cancelation measures cannot be understated. With millions of borrowers benefiting from these initiatives, the administration’s commitment to easing the burden of student debt remains steadfast.
“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 White House said in the statement.
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