The Biden administration said on Wednesday that it would forgive $1.2 billion in student debt for 150,000 borrowers enrolled in its new repayment plan.
The relief will go to borrowers who have been in repayment for a decade or longer, and originally took out $12,000 or less. Borrowers usually get debt forgiveness under income-driven repayment plans, including SAVE, after 20 or 25 years of payments. But under the SAVE plan, those who borrowed less can get their debt canceled after just a decade."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," U.S. Secretary of Education Miguel Cardona said in a statement.