The Biden administration has announced the cancellation of $7.4 billion in student debt for 277,000 borrowers as part of the Education Department’s SAVE Plan. This plan aims to provide relief for borrowers by offering more lenient repayment terms and faster debt cancellation.
President Biden emphasized his commitment to ensuring higher education is accessible and affordable despite facing legal challenges from Republican-led states over the legality of the plan. The Biden administration argues that the SAVE Plan is within its authority and is designed to help borrowers who need it most.
President Joe Biden of USA (Credits: KCUR)
Under the SAVE Plan, borrowers who originally borrowed $12,000 or less are eligible for forgiveness after 10 years, while those with higher loan amounts can receive cancellation on a longer timeline. The administration says the plan is tailored to assist those struggling with student loan debt, particularly those who did not complete their degrees.
Despite the legal challenges, the administration is moving forward with its efforts to address student debt. In addition to the SAVE Plan, Biden has proposed a one-time cancellation of up to $20,000 for more than 40 million borrowers.
Joe Biden (Credits: Britannica)
Although the Supreme Court struck down the one-time cancellation, other relief measures, such as waiving unpaid interest and expanding forgiveness programs, are being implemented.
The Biden administration has provided loan relief to 4.3 million people, totaling $153 billion through various programs. Despite opposition and legal challenges, the administration remains committed to addressing the student debt crisis and making higher education more accessible to all.
