From Time:

The Biden administration’s new income-driven repayment plan will offer early student loan forgiveness to borrowers with high original loan balances, starting in February. Initially, widespread reports suggested only loan amounts of $12,000 or less qualified for forgiveness, but according to the Education Department, higher balances are eligible as well.

The SAVE program core requirements for student loan forgiveness relate to the original amount borrowed and the length of time in repayment. Borrowers enrolled in the SAVE program will have their debts canceled as soon as February if they meet required criteria, with no action needed. Almost 7 million people are currently enrolled in SAVE, with nearly 4 million borrowers having their loan payments reduced to $0.

As an income-driven repayment plan, SAVE sets monthly loan payments at 10% of disposable income, with each “payment” of zero counting toward repayment. Undergraduate loans have a maximum repayment time of 20 years, while graduate loans can take up to 25 years. Finally, in July, the formula determining monthly payment amounts will change to be more generous.



Read more: Early Student Loan Forgiveness Applies to More Borrowers