Article Summary –
The Biden administration has approved an additional $1.2 billion in student loan forgiveness, providing relief to 153,000 borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan. This round of forgiveness targets borrowers who have been making payments for at least 10 years on college loans of $12,000 or less. Since Biden’s tenure, nearly $138 billion in student debt held by 3.9 million borrowers has been canceled, and the SAVE program, launched in August 2023, has enrolled 7.5 million borrowers.
Biden Administration Approves $1.2 Billion in Student Loan Forgiveness
The Biden administration approved an additional $1.2 billion in student loan forgiveness, the U.S. Department of Education announced on Feb. 21. This relief will aid 153,000 individuals enrolled in Biden’s Saving on a Valuable Education (SAVE) Plan.
“Borrowers with low balances who have been paying for a decade have done their part and deserve relief,” stated Education Secretary Miguel Cardona here.
This forgiveness is open to SAVE plan borrowers who’ve made loan payments for 10 years on debts of $12,000 or less.
The Biden administration reported that $138 billion in student debt has been canceled for 3.9 million borrowers since Biden’s tenure.
Moreover, total enrollment in SAVE has reached 7.5 million borrowers since its August 2023 launch. This plan aims to reduce undergraduate loan payments, offer early debt forgiveness for low balance accounts, cap loan growth due to unpaid interest, and remove monthly payments for several low-income borrowers.
In January, Department of Education data noted that 120,700 borrowers in Wisconsin, 239,700 borrowers in Michigan, and 289,800 borrowers in Pennsylvania enrolled in SAVE.
The SAVE program was initiated after a 6-3 Supreme Court decision in June 2023, rejecting Biden’s original loan forgiveness program.
Former President Donald Trump, the current 2024 Republican presidential nomination leader, opposes debt relief and supported the Supreme Court decision. Congressional Republicans also opposed Biden’s student debt relief proposals. Senate Republicans and Democratic Sen. Joe Manchin voted on a measure to stop SAVE but this attempt failed with a 50-49 vote.
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