Please ensure Javascript is enabled for purposes of website accessibility
Federal Student Loans for Nearly 153,000 Borrowers Being Canceled, Biden Says
gvw_ap_news
By Associated Press
Published 2 months ago on
February 21, 2024

Share

Getting your Trinity Audio player ready...

Biden announces automatic cancellation of federal student loans for 153,000 borrowers.

The first round of the SAVE plan will clear $1.2 billion in loans.

Eligibility for loan cancellation includes enrollment in SAVE plan and 10 years of payments.


CULVER CITY, Calif. — President Joe Biden announced Wednesday that his administration was automatically canceling federal student loans for nearly 153,000 borrowers, putting the spotlight on his debt cancellation efforts as he ramps up his reelection campaign.

Biden, who is in the midst of a three-day campaign swing through California, made the announcement as part of a new repayment plan that offers a faster path to forgiveness.

Details of the Announcement

The president was expected to speak about his administration’s student loan relief efforts from a local library before he went on to campaign-related events Wednesday.

The administration began sending email notifications on Wednesday to some of the borrowers who will benefit from what the White House has called the SAVE program. The cancellations were originally scheduled to start in July, but last month the administration said it would be ready almost six months ahead of schedule, in February.

“Starting today, the first round of folks who are enrolled in our SAVE student loan repayment plan who have paid their loans for 10 years and borrowed $12,000 or less will have their debt cancelled,” Biden posted on social media Wednesday. “That’s 150,000 Americans and counting. And we’re pushing to relieve more.”

Impact of the SAVE Plan

The first round of forgiveness from the SAVE plan will clear $1.2 billion in loans. The borrowers will get emails with a message from Biden notifying them that “all or a portion of your federal student loans will be forgiven because you qualify for early loan forgiveness under my Administration’s SAVE Plan.”

The president is expected to highlight the SAVE plan during a speech in Culver City, California, before heading to San Francisco later Wednesday for more campaign fundraising.

Biden in the email writes he has heard from “countless people who have told me that relieving the burden of their student loan debt will allow them to support themselves and their families, buy their first home, start a small business, and move forward with life plans they’ve put on hold.”

More than 7.5 million people have enrolled in the new repayment plan.

Eligibility for Loan Cancellation

Borrowers are eligible for cancellation if they are enrolled in the SAVE plan, originally borrowed $12,000 or less to attend college and have made at least 10 years of payments. Those who took out more than $12,000 will be eligible for cancellation but on a longer timeline. For each $1,000 borrowed beyond $12,000, it adds an additional year of payments on top of 10 years.

The maximum repayment period is capped at 20 years for those with only undergraduate loans and 25 years for those with any graduate school loans.

“With today’s announcement, we are once again sending a clear message to borrowers who had low balances: If you’ve been paying for a decade, you’ve done your part, and you deserve relief,” Education Secretary Miguel Cardona said.

Future of the Repayment Plan

Biden announced the new repayment plan last year alongside a separate plan to cancel up to $20,000 in loans for millions of Americans. The Supreme Court struck down his plan for widespread forgiveness, but the repayment plan has so far escaped that level of legal scrutiny. Unlike his proposal for mass cancellation — which had never been done before — the repayment plan is a twist on existing income-based plans created by Congress more than a decade ago.

During a quick stop at a local restaurant, CJ’s Cafe, before his speech Wednesday, Biden greeted customers, offering handshakes and hugs and posing for selfies — and he ordered a breakfast burrito.

RELATED TOPICS:

DON'T MISS

Lamborghini’s Race Evolution: From Tractors to the Track

DON'T MISS

Biden Administration Restricts Oil and Gas Leasing in 13 Million Acres of Alaska’s Petroleum Reserve

DON'T MISS

Logan Webb’s Seven Dominant Innings Help Giants Blank Diamondbacks

DON'T MISS

San Francisco Mayor Announces the City Will Receive Pandas from China

DON'T MISS

49ers to Pick 1st Round for First Time Since 2021

DON'T MISS

Jury Selection Could Be Nearing a Close in Donald Trump’s Hush Money Trial in New York

DON'T MISS

Finding an Apartment May Be Easier for California Pet Owners Under New Legislation

DON'T MISS

Abandoned Pup LB Finds Hope and Healing. He Available for Adoption at Mell’s Mutts.

DON'T MISS

Iran Fires at Suspected Israeli Drones Near Isfahan Air Base, Nuclear Facility

DON'T MISS

Who Owns Businesses in California? A Lawmaker Wants the Public to Know

UP NEXT

Biden Administration Restricts Oil and Gas Leasing in 13 Million Acres of Alaska’s Petroleum Reserve

UP NEXT

Logan Webb’s Seven Dominant Innings Help Giants Blank Diamondbacks

UP NEXT

San Francisco Mayor Announces the City Will Receive Pandas from China

UP NEXT

49ers to Pick 1st Round for First Time Since 2021

UP NEXT

Jury Selection Could Be Nearing a Close in Donald Trump’s Hush Money Trial in New York

UP NEXT

Finding an Apartment May Be Easier for California Pet Owners Under New Legislation

UP NEXT

Abandoned Pup LB Finds Hope and Healing. He Available for Adoption at Mell’s Mutts.

UP NEXT

Iran Fires at Suspected Israeli Drones Near Isfahan Air Base, Nuclear Facility

UP NEXT

$11M State Grant Will Help Fresno’s Emergency Shelter Beds, Mental Health Services

UP NEXT

Did City Council Finally Give New NW Fresno Costco a Green Light?

San Francisco Mayor Announces the City Will Receive Pandas from China

31 mins ago

49ers to Pick 1st Round for First Time Since 2021

34 mins ago

Jury Selection Could Be Nearing a Close in Donald Trump’s Hush Money Trial in New York

39 mins ago

Finding an Apartment May Be Easier for California Pet Owners Under New Legislation

1 hour ago

Abandoned Pup LB Finds Hope and Healing. He Available for Adoption at Mell’s Mutts.

1 hour ago

Iran Fires at Suspected Israeli Drones Near Isfahan Air Base, Nuclear Facility

1 hour ago

Who Owns Businesses in California? A Lawmaker Wants the Public to Know

5 hours ago

$11M State Grant Will Help Fresno’s Emergency Shelter Beds, Mental Health Services

16 hours ago

Did City Council Finally Give New NW Fresno Costco a Green Light?

16 hours ago

Prop 47 Reformers Send Nearly a Million Signatures to Sacramento

17 hours ago

Lamborghini’s Race Evolution: From Tractors to the Track

Lamborghini, a name synonymous with automotive elegance and raw power, has made an indelible mark on the racing world with its evolution int...

2 mins ago

Central Octane: Lamborghini Super Trofeo EVO
2 mins ago

Lamborghini’s Race Evolution: From Tractors to the Track

8 mins ago

Biden Administration Restricts Oil and Gas Leasing in 13 Million Acres of Alaska’s Petroleum Reserve

23 mins ago

Logan Webb’s Seven Dominant Innings Help Giants Blank Diamondbacks

31 mins ago

San Francisco Mayor Announces the City Will Receive Pandas from China

Photo of head coach Kyle Shanahan
34 mins ago

49ers to Pick 1st Round for First Time Since 2021

39 mins ago

Jury Selection Could Be Nearing a Close in Donald Trump’s Hush Money Trial in New York

1 hour ago

Finding an Apartment May Be Easier for California Pet Owners Under New Legislation

1 hour ago

Abandoned Pup LB Finds Hope and Healing. He Available for Adoption at Mell’s Mutts.

MENU

CONNECT WITH US

Search

Send this to a friend