(NewsNation) — About 153,000 borrowers currently enrolled in the Saving on a Valuable Education repayment plan will have a total of $1.2 billion in student debt canceled, the White House announced Wednesday.
These borrowers are the first to benefit from the SAVE plan that provides forgiveness to borrowers who have been in repayment for at least 10 years and took out $12,000 or less in student loans, according to a White House fact sheet.
The move was initially planned for July, but the White House said Biden administration officials decided to provide the debt forgiveness ahead of schedule.
“This plan reflects our unapologetic commitment to deliver as much relief as possible to as many borrowers as possible, as quickly as possible,” Education Secretary Miguel Cardona said on a Tuesday call with reporters, NewsNation partner The Hill wrote. “We’re providing real, immediate breathing room from an unacceptable reality where student loan payments compete with basic needs.”
Eligible borrowers will receive an email Wednesday from Biden telling them they will get the forgiveness. Next week, the Department of Education plans to reach out to those who are eligible but not currently enrolled in the SAVE plan, to encourage them to do so.
According to the White House, the federal government has approved $138 billion in student debt cancellation for almost 3.9 million people through more than two dozen executive actions.
Although Biden initially tried to cancel up to $20,000 for around 43 million people with incomes under $125,000, the Supreme Court ruled he overstepped his authority, leading the president to ask the Education Department to craft a new plan.
The Associated Press contributed to this report.