Student Loan Cancellation Update as Biden Approves $1.2 Billion Relief

President Joe Biden announced on Wednesday that his administration is canceling $1.2 billion dollars in student debt for some 153,000 borrowers enrolled in a new repayment plan.

The Biden administration had initially planned to start forgiveness under the Saving on a Valuable Education (SAVE) plan in July, but it is now taking effect almost six months ahead of schedule.

"This shortened time to forgiveness will particularly help community college and other borrowers with smaller loans and put many on track to being free of student debt faster than ever before," the White House said in a statement.

The relief applies to borrowers enrolled in the SAVE plan who originally took out $12,000 or less in student loans and have made at least 10 years of payments.