Federal student loan borrowers who initially took out smaller loan amounts may be eligible for debt cancellation sooner than they anticipated.
The SAVE plan, which reduces payments for millions of borrowers, opened for enrollment last August.
But some of its benefits, like the shortened path to forgiveness, were not set to take effect until July 2024.
SAVE cuts that term by half for people who initially borrowed $12,000 or less and reduces the repayment timeline for those who originally borrowed $21,000 or less.
For example, if someone originally borrowed $13,000 in loans, any remaining balance would be forgiven after 11 years of payments.
Organizations:
Biden, Education