WASHINGTON — Nearly 245,000 borrowers in Illinois holding student loans under the SAVE plan may be eligible to get their debt wiped out under a new program President Joe Biden announced Friday.
The debt forgiveness is open to borrowers who are enrolled in the Saving on a Valuable Education plan, or SAVE.
Biden said in a statement, “Starting next month, borrowers enrolled in SAVE who took out less than $12,000 in loans and have been in repayment for 10 years will get their remaining student debt cancelled immediately.
“This action will particularly help community college borrowers, low-income borrowers and those struggling to repay their loans. And, it’s part of our ongoing efforts to act as quickly as possible to give more borrowers breathing room so they can get out from under the burden of student loan debt, move on with their lives and pursue their dreams.”
“I encourage all borrowers who may be eligible for early debt cancellation to sign up for the SAVE plan at studentaid.gov. Already, 6.9 million borrowers are enrolled in the plan, and 3.9 million have a $0 monthly payment.”
The SAVE plan is a repayment option that in Illinois, according to the White House, has 244,700 borrowers.
This new announcement builds on other Biden administration initiatives to cancel student loans.
Education Secretary Miguel Cardona said in a statement, “Our ability to deliver this relief to borrowers months ahead of schedule is a testament to the Biden Administration’s commitment to delivering relief to as many borrowers as possible, as quickly as possible.
“Today’s announcement gives borrowers an even greater reason to check out the SAVE plan and find out if they may qualify for earlier debt relief. With lower monthly payments, protection from runaway interest, and faster timelines to debt forgiveness, President Biden’s SAVE plan is not only benefitting millions of current borrowers but also providing the students of today and tomorrow with a more affordable pathway to college degrees and credentials.”
