This initiative is part of a new repayment plan aimed at providing a quicker path to debt forgiveness. Biden, currently on a three-day campaign tour in California, announced on Wednesday.
The plan targets borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment program, specifically those who borrowed $12,000 or less and have been making repayments for at least 10 years.
The White House stated that this move will especially benefit community college students and others with smaller loans, helping them become debt-free faster.
Biden’s administration had been seeking alternative methods for debt relief after the Supreme Court blocked a broader plan to forgive $430 billion in student loan debt.
“While a college degree is still a ticket to a better life, that ticket is too expensive,” Biden remarked in his statement. “And too many Americans are still saddled with unsustainable debt in exchange for a college degree.”
The latest loan forgiveness effort is set to begin almost six months ahead of the originally scheduled July date, with the first round of cancellations set for February.
Notifications are being sent to eligible borrowers, informing them that their federal student loans will be forgiven under the SAVE plan.
Biden has emphasised the importance of this relief, noting that it will enable individuals to support their families, buy homes, start businesses, and move forward with life plans previously on hold. Over 7.5 million people have enrolled in the SAVE repayment plan.
This student debt relief initiative is seen as crucial for gaining the support of left-leaning progressives and young voters, whose backing is essential for Biden’s re-election bid.
While Democrats largely support such measures, Republicans have generally opposed them. To date, Biden’s administration has cancelled approximately $138 billion in student debt for nearly 3.9 million people through various executive actions.
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