01/12/2024

Biden Administration Announces New Student Loan Forgiveness Plan

The new initiative is set to launch in February

On Friday, the Biden Administration announced a new student loan forgiveness plan set to erase the debt of certain borrowers enrolled in the Saving on a Valuable Education (SAVE) plan.

The new initiative, which is set to launch in February, will provide debt relief for borrowers who have made 10 years of monthly payments and have an original principal balance of $12,000 or less in loans.

Debt relief will be automatically applied to borrowers’ accounts, meaning they do not have to take any action. Borrowers who have a principal balance greater than $12,000 are also eligible for forgiveness on a longer time frame. Nearly 7 million borrowers are currently enrolled in the SAVE plan.

Please select this link to read the complete article from TIME.