President Joe Biden announced another batch of student loan forgiveness Friday for 277,000 borrowers. The canceled debt adds up to $7.4 billion.
Most of those borrowers signed up for the president’s signature income-driven repayment plan – Saving on a Valuable Education, or SAVE. Through SAVE, people who originally borrowed a small amount ($12,000 or less) and have been paying it off for at least a decade are eligible for relief.
Others affected are 65,700 borrowers participating through other income-driven plans who should have qualified for relief but did not because their loan servicers wrongfully put them into forbearance. Fixes to those plans account for nearly half of the loans forgiven in the announcement Friday.
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