The White House highlights that this initiative will especially benefit community colleges
President Joe Biden's administration is making headlines by canceling $1.2 billion in student loans for about 153,000 people as part of a program aimed at fulfilling promises to improve debt forgiveness. The New York Post reported.
The move follows the Supreme Court's rejection of a broader $430 billion student loan forgiveness plan last June, prompting Biden to explore alternative approaches to addressing the issue.
The White House emphasizes that this initiative will particularly benefit community colleges and other borrowers with smaller loans, accelerating their path to freedom from student debt.
Under the new repayment plan, people who initially borrowed $12,000 or less and have made payments for at least ten years will have their federal student loan balances forgiven.
Those enrolled in the SAVE program are expected to receive emails on Wednesday notifying them of the forgiveness of $1.2 billion in federal student loan debt.
As the presidential race gains momentum, the Biden administration aims to underscore its efforts to alleviate student loan debt, potentially using this cancellation as a strategic move to connect with voters.
The administration's commitment to addressing student loan challenges was reiterated in a statement: “From day one of my administration, I promised to fix student loan programs so that higher education can be a ticket to the middle class, not a barrier to opportunity.
Although originally planned to begin in July, the administration began the debt forgiveness process in February, accelerating its timeline.
While many federal loan debt cancellations predate Biden's presidency, his administration has outpaced others in cancellations, in part due to efforts to rectify past administrative problems and temporarily extend certain debt relief programs.
