From Fortune:

The Biden administration is set to begin canceling student loans for some borrowers starting in February, much sooner than originally anticipated. The new repayment plan, called the SAVE plan, offers far more generous terms than previous income-driven repayment plans that it’s meant to replace, offering loan cancellation in as little as 10 years. In addition, it lowers monthly payments for millions of borrowers.

Up to $20,000 in loans may be canceled for millions of Americans under this new initiative. The Supreme Court struck down the plan for widespread forgiveness, but the new SAVE plan has escaped that level of legal scrutiny. The plan was developed last year at the same time as another plan to cancel up to $20,000 in loans for millions of Americans.

February’s relief will primarily aid Americans who attended community colleges, which typically cost less than four-year universities. A separate plan for widespread cancellation is also being pursued by the Biden administration, following the Supreme Court rejecting the earlier plan.

The new plan prevents interest from accumulating as long as borrowers make monthly payments, and makes more Americans eligible to have their monthly bill lowered to $0. Furthermore, changes to limit borrowers’ payments to 5% of their discretionary income will take effect in July.



Read more: Biden accelerates new student loan cancelation plan that will benefit some Americans starting in February