Joe Biden cancels $1.2bn in student loans for more than 150,000 people – targets individuals enrolled in a particular repayment plan

The Biden administration has revealed plans to forgive $1.2 billion (£949 million) in student debt for 153,000 American borrowers.

Previously, President Joe Biden’s initiative to erase student debt for over 40 million Americans was halted by the Supreme Court.

However, this latest announcement specifically targets individuals enrolled in a particular repayment plan who meet specific criteria.

Those eligible for relief will receive notifications, and the debt cancellation will be automatically implemented.

The White House disclosed on Wednesday that this initiative is exclusively for participants in the voluntary Saving on a Valuable Education (Save) repayment plan, who have consistently made payments for at least a decade, and who initially borrowed $12,000 or less for educational purposes.

It will “particularly help community college and other borrowers with smaller loans and put many on track to being free of student debt faster than ever before”, the White House said in a statement.