Education Department accelerates student loan debt cancellation plan
By
Breccan F. Thies
January 12, 2024 8:31 am
The Biden administration announced Friday morning that it is expanding and accelerating its income-driven student loan forgiveness plan.
Borrowers who originally took out loans of $12,000 or less and have made at least 10 years of payments will be eligible for debt cancellation as early as next month under the Saving on a Valuable Education Plan.
“Beyond being the most affordable student loan repayment plan ever available, the Biden-Harris Administration designed the SAVE Plan to put community college students and other low-balance borrowers on a faster track to debt forgiveness than ever before,” Education Secretary Miguel Cardona said in a press release. “With lower monthly payments, protection from runaway interest, and faster timelines to debt forgiveness, President Biden’s SAVE plan is not only benefitting millions of current borrowers but also providing the students of today and tomorrow with a more affordable pathway to college degrees and credentials.”
The Biden administration noted that the new benefit under the SAVE Plan is being rolled out months prior to its original start date, which was July 1.
In addition to the $12,000, 10-year payment limit for immediate cancellation, the plan allows borrowers to receive the benefit after one year of additional payments per $1,000 above $12,000 borrowed.
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https://www.washingtonexaminer.com/news/2792210/education-department-student-loan-cancellation-plan/
