As promised, this week the Biden-Harris administration canceled student loan debt for borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan. The income-driven repayment plan was launched in August 2023, replacing the Revised Pay As You Earn (REPAYE) Plan.
Nearly 153,000 borrowers had a total of $1.2 billion student loan debt wiped out. Forgiveness applied to those who had taken out $12,000 or less in student loans and had been in repayment for at least 10 years.
This newest round brings the total amount canceled by the administration to an estimated $138 billion for 3.9 million borrowers — news that President Joe Biden and Los Angeles Mayor Karen Bass, the city’s first Black woman mayor, celebrated across her social media pages during a visit to the city yesterday.
Biden had a post of his own on Instagram, sharing: “I announced a plan to provide millions of working families with debt relief for their college student debt, but MAGA Republicans sued us and the Supreme Court blocked it. That didn’t stop me.”