The Biden administration is canceling student loans for 160,000 borrowers through a combination of existing programs, erasing $7.7 billion in federal student loans.
This marks the administration's largest cancellation of $167 billion in student debt for nearly 5 million Americans. President Joe Biden pledged to ensure higher education is a ticket to the middle class, not a barrier to opportunity.
Relief will be given to borrowers in three categories who hit certain milestones, including 54,000 borrowers enrolled in Biden's new income-driven repayment plan, 39,000 enrolled in earlier income-driven plans, and around 67,000 eligible through the Public Service Loan Forgiveness program.
The SAVE Plan, Biden's new payment plan, offers a faster path to forgiveness than earlier versions, making more people eligible for loan cancellation as they hit 10 years of payments. The cancellation is moving forward despite legal challenges from Republican-led states, who claim Biden needed to go through Congress for his overhaul of federal repayment plans.
This marks the administration's largest cancellation of $167 billion in student debt for nearly 5 million Americans. President Joe Biden pledged to ensure higher education is a ticket to the middle class, not a barrier to opportunity.
Relief will be given to borrowers in three categories who hit certain milestones, including 54,000 borrowers enrolled in Biden's new income-driven repayment plan, 39,000 enrolled in earlier income-driven plans, and around 67,000 eligible through the Public Service Loan Forgiveness program.
The SAVE Plan, Biden's new payment plan, offers a faster path to forgiveness than earlier versions, making more people eligible for loan cancellation as they hit 10 years of payments. The cancellation is moving forward despite legal challenges from Republican-led states, who claim Biden needed to go through Congress for his overhaul of federal repayment plans.
