Department of Education set to fast-track student loan forgiveness for borrowers with smaller loans

The Biden administration is accelerating the cancellation of federal student loans for borrowers who initially borrowed $12,000 or less and have been in repayment for at least 10 years. This change, previously scheduled for July, will now take effect in February. Borrowers who enroll in the Biden administration’s new income-based repayment plan called SAVE will have their debts automatically erased based on the amount initially borrowed. This decision is expected to benefit low-income borrowers, with many of them having left school before completing a degree. Borrowers enrolled in SAVE will be notified if their debts qualify for cancellation, with no further action required. The administration aims to provide relief to vulnerable groups of federal student loan borrowers.

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