New Delhi: More student loan debt will be canceled for 277,000 Americans, bringing the total amount of debt relief approved by the Biden administration to $153 billion for more than 4 million Americans, officials said Friday.
The latest round of debt cancellation will impact borrowers who were enrolled in the SAVE Plan, other income-driven loan repayment plans, and public service loan forgiveness programs, which provide debt relief to eligible federal, state, local, and tribal government employees, military members, law enforcement officers, and health care workers, for federal, state, local, and tribal government employees, military members, law enforcement officers, and health care workers.
The SAVE Plan, introduced last year, is the most affordable student loan repayment plan in the federal government, according to the Biden administration. Of the 8 million borrowers who are enrolled in the plan, 4.5 million of them pay $0 in monthly payments, and more than 1 million borrowers pay an additional $100 or less monthly. To date, the Biden administration has approved more than $54 billion in debt cancellation for 1.3 million borrowers enrolled in income-driven repayment plans, including the new SAVE Plan, according to a fact sheet.
The administration also plans to cancel debt for more than 30 million Americans through other actions outlined in previous weeks.