Biden cancels $1.2 billion in student loan debt for 150,000 borrowers

President Biden announced the cancellation of the additional $1.2 billion in student loan debt for about 153,000 borrowers on Wednesday, its latest effort to pay off student debt after the Supreme Court last year blocked the expanding plan.

Mr. Biden has now canceled $138 billion in student debt for nearly 3.9 million borrowers through about two dozen executive actions, according to the White House. Wednesday’s action comes as some Democrats implored Mr. Biden to highlight his success in debt relief to galvanize key voters, including young voters and black borrowers who disproportionately take on student loan debt.

Since the Supreme Court blocked Mr. Biden’s ambitious plan to write off $400 billion in student debt for about 43 million borrowers, the White House has engaged in various smaller debt relief programs for certain groups.

The latest round of cancellations benefits those enrolled in an income-based repayment plan known as SAVE, which opened for enrollment in August. It lowers monthly payments and shortens the life of the loan for millions of borrowers. The administration is making efforts to ensure that Mr. Biden gets credit for cancellation, and affected borrowers will receive an email from Mr. Biden on Wednesday informing them that their debt will be wiped out this week.

“This shortened time to forgiveness will especially help college and other borrowers with smaller loans and put many on the right track to getting out of student debt faster than ever before,” the administration said in a statement.

Borrowers who choose the SAVE plan who originally borrowed up to $12,000 and have made at least 10 years of qualifying monthly payments will have their debt completely wiped out. As part of this effort, the administration accelerated its plans to shorten loan terms; the changes are scheduled to take effect in July.

Wednesday morning’s announcement comes at an opportune time for Mr. Biden as he works to galvanize voters during a fundraising trip in California.

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