The Biden Administration confirmed the early wave of student debt cancellations, boasting that they are six months ahead of their plan.
This was announced by the White House on Friday, Jan. 12. As of writing, the U.S. has an outstanding student loan debt of almost $2 trillion.
On Jan. 5, the Biden Admin approved over $130 billion in student loan forgiveness to assist more than 3 million borrowers. U.S. President Joe Biden said that this is a part of his promise to bring higher education to more hardworking Americans.
Now, the Biden Admin announced a fresh wave of student loan debt cancellations for the government's SAVE program.
Biden Admin Confirms Early Student Loan Debt Cancellations
Joe Biden said that is proud that the Biden Administration is starting to implement one of the SAVE plan's impactful provisions. He boasted that they are implementing it six months ahead of their expected schedule.
The American leader confirmed that they will start canceling all student loan debt of those who are enrolled in the SAVE plan as early as February.
But, the early student loan debt cancellations will only apply to those who took out less than $12,000 in federal loans. Aside from this, they also need to be in repayment for at least 10 years, as reported by NBC News.
"Starting next month, borrowers enrolled in SAVE who took out less than $12,000 in loans and have been in repayment for 10 years will get their remaining student debt canceled immediately," said Biden via his White House official statement.
Why Enroll in Biden's SAVE Plan
The U.S. president said that the early student loan debt cancellations that his SAVE plan offers can help many Americans.
These include low-income borrowers, community college borrowers, as well as those who are still struggling to settle their loan debts.
"And, it's part of our ongoing efforts to act as quickly as possible to give more borrowers breathing room," explained Joe Biden.
He added that this will help U.S. citizens escape the burden of student loan debt and move on with their lives to pursue their dreams.
This is why the American leader is highly encouraging those who have student loan debts to enroll in the SAVE program. The Biden Administration said that the SAVE plan can cover around 30 million Americans.
As of press time, only around 7 million U.S. residents are enrolled. This means that the slots occupied are just a small portion of the SAVE plan's enrollment capacity.
"Today's announcement builds on all we've been able to achieve for students and student loan borrowers in the past few years," said the U.S. president.
