153,000 People Have Their Student Loans Forgiven, For A Total Of $1.2 Billion In Savings.

Many people waiting for the fulfillment of the promise to have their student loans canceled can breathe a sigh of relief. The Biden administration made an exciting announcement canceling $1.2 billion in student debt. The approval will mean savings for almost 153,000 borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan. The program was slated to roll out in July but has been implemented six months earlier than proposed.

With this new program in place, the total number of people who have received relief nears 3.9 million borrowers, with nearly $138 billion saved through student loan cancellations. The SAVE program offers debt forgiveness to people who have been paying off their loans for at least ten years. The program also limits the current benefits to those who borrowed $12,000 or less in student loans.

For borrowers with more than $12,000 in initial debt, there are provisions within the SAVE program to allow them relief, too. The program adds one year of repayment for each $1,000 over $12,000. A student with $14,000 of federal student loan debt would need to complete payments for 12 years to have their student loans canceled. While those students may not see immediate relief, the repayment period can be significantly reduced.

According to the U.S. Department of Education, nearly 153,000 borrowers will see their student loans canceled beginning this week. Initial notifications will be via email. The DOE will also contact eligible borrowers who have not enrolled in the SAVE program encouraging them to enroll. You can begin online enrollment here.

The student loan cancellation through SAVE most directly assists community college students and those with lower loan balances. The program offers borrowers, in many cases, student loan forgiveness within ten years. Please share this with someone affected by student loan debt.

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