The Biden administration is canceling student loans for more people. They’re doing this with a new plan called the SAVE Plan. The Education Department shared this news on Friday. The SAVE Plan helps borrowers get loan forgiveness faster than before.
President Joe Biden wants higher education to be affordable for everyone. He’s happy about this decision. He said, “I will never stop working to cancel student debt.”
With this new move, about 360,000 borrowers have gotten their loans canceled. It’s a total of $4.8 billion.
The SAVE Plan is like an old plan, but it’s better. It helps borrowers by making the rules more flexible.
The plan is helping people who can’t afford to pay their loans. It makes sure they don’t fall behind on payments.
The Biden administration is canceling student loans for more people
Education Secretary Miguel Cardona thinks this plan is great. He says it’s putting money back in people’s pockets. They can use it for groceries and healthcare.
Under the plan, if you borrowed $12,000 or less, your loan could be forgiven after 10 years. If you borrowed more, it might take longer.
This plan is meant to help those who need it most. Sometimes, people with smaller loan balances struggle more.
But not everyone is happy about it. Some Republican-led states are suing to stop it. They say it goes against the law. They also worry it will make it hard to hire people.
Despite the lawsuits, the Biden administration is moving forward with more loan cancellations. They want to help more than 30 million borrowers. They plan to start this fall.
Already, they’ve canceled loans for 65,000 borrowers. They’re also helping 5,000 more through the Public Service Loan Forgiveness program.
So far, the Biden administration has helped 4.3 million people, totaling $153 billion.
