Jan 12, 2024 - Politics & Policy

Biden cancels student loans for more borrowers

Illustration of a large pile of money with a graduation cap on top.

Illustration: Aïda Amer/Axios

The Biden administration is making good on its promise to cancel more student loan debt.

Driving the news: Starting next month, borrowers enrolled in the Saving on a Valuable Education plan who took out less than $12,000 in loans and have been in repayment for 10 years will get their remaining student debt cancelled, the administration announced Friday.

  • The SAVE plan provisions come nearly six months ahead of schedule, per the White House, and are intended to help community college and low-income borrowers.
  • The Department of Education did not immediately respond to Axios about how many people will have their debt cancelled through the initiative or what the dollar amount of debt cancelled will be.

The big picture: Although the Supreme Court blocked President Biden's major student loan forgiveness plan last year, his administration found workarounds to cancel some $132 billion in loans for more than 3.6 million student borrowers.

What they're saying: The move is a "part of our ongoing efforts to act as quickly as possible to give more borrowers breathing room so they can get out from under the burden of student loan debt, move on with their lives and pursue their dreams," Biden said in a statement.

  • He encouraged all borrowers who may be eligible for early debt cancellation to sign up for the SAVE plan at studentaid.gov.

By the numbers: 6.9 million people have already enrolled in the plan, and 3.9 million have a $0 monthly payment.

Go deeper: What's going on with student loan relief

Go deeper