Student loan forgiveness under SAVE plan to begin next month

(CNN) – The White House announced Friday that some student loan borrowers enrolled in President Joe Biden’s SAVE plan may see their remaining balance wiped away starting next month. The forgiveness, originally scheduled to go into effect in July, comes ahead of schedule and applies to borrowers with a federal student loan balance of $12,000 or less who have been making payments for at least 10 years. Related Stories “This action will particularly help community college borrowers, low-income borrowers, and those struggling to repay their loans,” Biden said in a statement. “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.” The Saving on a Valuable Education plan was launched last summer after the Supreme Court struck down Biden’s one-time student loan forgiveness program aimed at delivering up to $20,000 of relief to millions of borrowers. Unlike the proposed program, SAVE is a repayment plan that provides benefits for both current and future borrowers who sign up for it. Nearly 7 million borrowers have signed up for the plan,...