Joe Biden Announces Student Loan Cancelation for Some Borrowers

By Jace Dela Cruz

Jan 13, 2024 04:13 AM EST

President Joe Biden has announced a new initiative to cancel federal student loans, targeting borrowers with relatively small debts who have been in repayment for a decade or more.

According to NBC News, the announcement came on Friday, with Biden saying that borrowers who received less than $12,000 in federal loans and have been making payments for at least 10 years will have their remaining student debt canceled immediately, effective in February.

President Biden Departs The White House En Route To Pennsylvania
(Photo : Drew Angerer/Getty Images)
WASHINGTON, DC - JANUARY 12: U.S. President Joe Biden walks to Marine One on the South Lawn of the White House January 12, 2024 in Washington, DC. President Biden is traveling to Allentown, Pennsylvania today, where he will visit small businesses and discuss his economic agenda.

The SAVE Plan of the Joe Biden Administration

Joe Biden emphasized that this move is nearly six months ahead of schedule and applies specifically to borrowers enrolled in the new income-driven repayment plan called SAVE.

According to the administration officials, this initiative is a way to help borrowers lower their monthly payments. While approximately 30 million people qualify for the SAVE plan, Biden noted that 6.9 million are presently enrolled.

However, the exact count of borrowers affected by the cancellation effort was not immediately specified. Emphasizing the initiative's benefits, Biden pointed out its advantages for community college attendees, low-income borrowers, and those struggling with loan repayment. 

"This action will particularly help community college borrowers, low-income borrowers, and those struggling to repay their loans," the president said in a statement.

This move aligns with the administration's continuous efforts to reduce student loan debt.

READ ALSO: Joe Biden Extends Suspension of Trump-Era EU Steel, Aluminum Tariffs for 2 Years 

Federal Student Loan Repayments

After a halt of more than three years, many borrowers started repaying federal student loans in October. Last year, the Supreme Court rejected the pandemic-era debt relief plan of Joe Biden. This plan aimed to get rid of up to $20,000 in student debt for some 43 million borrowers.

In his statement, Biden cited the administration's efforts to "pursue an alternative path," which he said had already canceled student debt for 3.6 million individuals.

READ MORE: How Vladimir Putin's Health Compares to Joe Biden's: Russian Doctor Touts Russia's President 'Excellent' Health

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