02/21/2024

First Batch of Borrowers' Student Loan Balances Wiped in Biden's SAVE Plan

Nearly 153,000 borrowers had their loans canceled

An email went out this morning to some student loan borrowers basically saying, you're debt free.

On Wednesday, the federal Department of Education zeroed out loan balances for nearly 153,000 borrowers. They are people who borrowed $12,000 or less, have been paying their student loans for at least 10 years, and enrolled in the Biden administration's new repayment plan called SAVE launched last summer.

"We're providing debt relief to people who need it the most," said Education Secretary Miguel Cardona on Wednesday in an interview on NPR's Morning Edition. "We're also addressing the root cause of the issue, which is, the cost of college is out of control."

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