President Joe Biden is wiping out another $1.2 billion in student loan debt.
In a statement on Wednesday, the White House revealed 153,000 borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan would be having their student loans wiped out.
“The borrowers receiving relief are the first to benefit from a SAVE plan policy that provides debt forgiveness to borrowers who have been in repayment after as little as 10 years and took out $12,000 or less in student loans,” the statement explained.
It noted the cancellation was originally scheduled to happen in July.
“From Day One of his Administration, President Biden vowed to fix the student loan system and make sure higher education is a pathway to the middle class – not a barrier to opportunity,” the statement continued.
It added, “Already, the President has cancelled more student debt than any President in history – delivering lifechanging relief to students and families – and has created the most affordable student loan repayment plan ever: the SAVE plan.”
The White House notes Biden’s administration has cancelled student loan debt for roughly 3.9 million Americans, totally around $138 billion.
The Education Department explained the cancellation applies to those who borrowed less than $12,000 and have been making payments for 10 years.
However, CBS News notes, “For every $1,000 borrowed above $12,000, a borrower can receive forgiveness after an additional year of payments, the department added.”
The announcement comes after Biden’s failed mass student loan cancellation last year.
That plan would have erased more than $400 billion in student loan debt, but was struck down by the Supreme Court.
Despite the high court’s ruling, Biden has not be deterred in his effort to cancel student loans.
In Oct. 22, CNN noted the president can canceled $127 billion in student debt, which is “more student loan forgiveness than was granted under any other administration.”
