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Biden Announces $1.2 Billion Student Debt Relief for 153,000 Borrowers

The new initiative targets borrowers with loans of $12,000 or less who have been paying for over a decade, aiming to alleviate financial stress and support young voters.

Student loan borrowers gather near The White House to tell President Biden to cancel student debt on May 12, 2020 in Washington, DC.
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Overview

  • President Joe Biden announced a new student debt relief initiative, forgiving $1.2 billion for 153,000 borrowers enrolled in the SAVE repayment plan.
  • The relief targets borrowers with original loan amounts of $12,000 or less who have been making payments for a decade or more.
  • The SAVE plan aims to make debt forgiveness more accessible and quicker, with 85% of community college students expected to be debt-free within 10 years.
  • The initiative is part of Biden's broader campaign to address student debt, a key issue for young voters ahead of the 2024 elections.
  • Critics argue the plan unfairly shifts the financial burden and question its legality, while supporters praise its potential to alleviate financial stress for millions.