Biden Is Forgiving Another $1.2 Billion in Student Loan Debt

President Joe Biden delivers remarks on canceling student debt on Feb. 21, 2024 in Culver City, Calif. The Biden administration announced it will forgive $1.2 billion in student debt for more than 150,000 borrowers who are enrolled in the Saving on a Valuable Education repayment plan.

To qualify for the reduced time to forgiveness benefit, borrowers must have signed up for the SAVE Plan, made at least a decade of payments and taken out initial student loan balances of $12,000 or less. The Department of Education noted that for every $1,000 taken out over $12,000, borrowers can obtain relief after an additional year of payments.

The SAVE Plan prevents borrowers from generating the “runaway interest” that saddles them with loan balances bigger than the amounts they took out initially. By July, the Department of Education will activate the SAVE Plan’s other benefits, which will see monthly payments shrink from 10 percent of a borrower’s discretionary income to 5 percent.

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