Some Americans will get their student loans canceled in February as Biden accelerates his new plan
The Biden administration will start canceling student loans for some borrowers starting in February as part of a new repayment plan
WASHINGTON (AP) — The Biden administration will start canceling student loans for some borrowers starting in February as part of a new repayment plan that's taking effect nearly six months ahead of schedule.
Loan cancellation was originally set to begin in July under the new SAVE repayment plan, but it’s being accelerated to provide faster relief to borrowers, President Joe Biden said Friday. It’s part of an effort “to act as quickly as possible to give more borrowers breathing room” and move on from their student debt, the Democratic president said in a statement.
Biden announced the new repayment plan last year alongside a separate plan to cancel up to $20,000 in loans for millions of Americans. The Supreme Court struck down his plan for widespread forgiveness, but the repayment plan has so far escaped that level of legal scrutiny. Republicans in Congress tried unsuccessfully to block the new repayment plan through legislation and a resolution last year.
