The Biden administration has announced another round of student loan cancellations, benefiting 206,000 borrowers under a new repayment plan designed to offer a faster route to forgiveness. This move comes as part of the progress of the SAVE Plan, with more individuals becoming eligible for loan cancellation as they reach 10 years of payments.

However, the recent cancellations have been met with legal challenges. Two groups of Republican-led states, led by Kansas and Missouri, have filed federal lawsuits, arguing that the Biden administration exceeded its authority in creating the repayment option.

Despite the legal challenges, President Joe Biden remains committed to his goal of making higher education more accessible, stating, ‘I will never stop working to cancel student debt — no matter how many times Republican elected officials try to stop us.’

With this latest action, the Education Department has approved the cancellation of approximately 360,000 borrowers through the new repayment plan, amounting to $4.8 billion. The SAVE Plan, an updated version of a federal repayment plan, offers more generous terms compared to its predecessors.

The new plan allows more borrowers to defer payments until their income rises above certain limits and reduces payments more significantly than previous plans. It aims to provide additional support to today’s borrowers who are struggling to afford standard repayment plans.