Student Loan Forgiveness Is Coming Early for Borrowers in Biden's New SAVE Plan
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This story has been updated with new details.
Student loan forgiveness is happening ahead of schedule for borrowers enrolled in the Biden administration’s new income-driven repayment plan.
Starting next month, borrowers in the plan, called Saving for a Valuable Education or SAVE, who have been in repayment for at least 10 years will get their remaining student debt canceled, the White House announced Friday.
Partially launched last summer, the SAVE plan ties monthly loan bills to 10% of one's disposable income, and borrowers can receive loan forgiveness on any remaining balance after making between 10 and 25 years of qualifying payments. The loan forgiveness benefits were originally scheduled to begin on July 1 along with a slew of additional SAVE perks.
Why the early roll out? Well, "why wait?" the White House says.
