Biden Cancels $1.2 Billion In Student Loans For 153,000 Borrowers

U.S. President Joe Biden announced the approval of $1.2 billion in student debt cancellation for almost 153,000 borrowers currently enrolled in the Saving on a Valuable Education (SAVE) repayment plan.

The borrowers receiving relief are the first to benefit from a SAVE plan policy that provides debt forgiveness to borrowers who have been in repayment after as little as 10 years and took out $12,000 or less in student loans. 

The SAVE Plan is the newest income-driven repayment (IDR) plan. Like other IDR plans, the SAVE Plan calculates a borrower's monthly payment amount based on your income and family size. In addition, the SAVE Plan has unique benefits that will lower payments for many borrowers.

The SAVE Plan replaced the Revised Pay As You Earn (REPAYE) Plan. Borrowers on the REPAYE Plan automatically get the benefits of the new SAVE Plan, according to the U.S. Department of Education.