President Biden Accelerates Student Debt Relief with Early Implementation of SAVE Plan

by Stacy M. Brown 01/17/2024

Again, attempting to fulfill a key promise made during his 2020 campaign, President Joe Biden announced the accelerated implementation of a crucial provision under the Student Aid for Voluntary Education (SAVE) plan. The president reaffirmed his commitment to reforming the student loan system and ensuring that higher education remains a pathway to the middle class, “not a barrier to opportunity.”

“From Day One of my Administration, I vowed to fix the student loan system and make sure higher education is a pathway to the middle class—not a barrier to opportunity,” Biden stated.

The president asserted that his administration’s SAVE plan has helped 3.6 million Americans by canceling their student debt. The plan’s goal is to create a more affordable student loan repayment structure while providing life-changing support to students and their families, Biden said.

“I am proud that my administration is implementing one of the most impactful provisions of the SAVE plan nearly six months ahead of schedule,” Biden asserted. “Starting next month, borrowers enrolled in SAVE who took out less than $12,000 in loans and have been in repayment for ten years will get their remaining student debt canceled immediately.”

He noted that this step should benefit community college borrowers, low-income individuals, and those facing challenges in repaying their loans. Biden further stressed the importance of swift action to provide borrowers with necessary relief, enabling them to move forward and pursue their aspirations without the weight of student loan debt.

“I encourage all borrowers eligible for early debt cancellation to sign up for the SAVE plan at studentaid.gov. Already, 6.9 million borrowers are enrolled in the plan, and 3.9 million have a $0 monthly payment,” urged Biden, highlighting the existing enrollment numbers and the program’s potential impact.

The president’s announcement builds upon the administration’s broader efforts to tackle the complexities of student loans. He cited accomplishments such as fixing the Public Service Loan Forgiveness program, increasing Pell Grants for families earning less than $60,000 a year, and holding colleges accountable for leaving students burdened with unaffordable debts.

“In the wake of the Supreme Court’s decision on our student debt relief plan, we are continuing to pursue an alternative path to deliver student debt relief to as many borrowers as possible as quickly as possible,” Biden insisted. “I won’t back down from using every tool at our disposal to get student loan borrowers the relief they need to reach their dreams.”