President Joe Biden's administration has cancelled $1.2 billion worth of student loans for some 153,000 people who are eligible under a program used to make good on promises to increase loan forgiveness

President Joe Biden's administration has cancelled $1.2 billion worth of student loans for some 153,000 people who are eligible under a program used to make good on promises to increase loan forgiveness.


Biden, a member of the Democratic Party, had previously promised to explore alternative methods for addressing debt relief after the Supreme Court blocked his broader proposal to cancel $430 billion in student loans in June last year.

Progressive and young voters, whose backing Biden requires for a successful re-election bid in November, have been outspoken in their advocacy for widespread student loan forgiveness, a stance largely opposed by Republicans.

"Although a college degree offers a pathway to a better life, that pathway comes at a steep cost," Biden remarked during a visit to California focused on fundraising for his re-election campaign.

Biden stated that the latest round of debt relief would be particularly beneficial to community college graduates and borrowers with smaller loans, enabling them to qualify for debt forgiveness sooner than ever before.

According to the White House, the administration has already canceled approximately $138 billion in student debt for nearly 3.9 million individuals through executive actions.

The recent announcement pertains to individuals enrolled in the Saving on a Valuable Education (SAVE) repayment program, specifically those who borrowed $12,000 or less and have been making regular payments for at least 10 years.

The SAVE program, as outlined by the White House, considers a borrower's income and family size when determining monthly payments and ensures that balances do not increase due to unpaid interest as long as borrowers adhere to regular payment schedules.

Recipients of the relief will be notified via email from Biden, who expressed hope that the alleviation would provide them with some breathing room. He added that many individuals had informed him that reducing their student loan debt burden would enable them to support themselves and their families, purchase their first homes, launch small businesses, and pursue life plans that had been on hold.