Title: "Biden Administration Announces $1.2 Billion Student Debt Cancellation for 153,000 Borrowers"

In a recent announcement, the Biden administration revealed plans to cancel $1.2 billion of student debt for 153,000 American borrowers. This decision comes after the Supreme Court blocked President Joe Biden's initial proposal to cancel student debt for over 40 million Americans. The debt relief initiative specifically targets individuals enrolled in the Saving on a Valuable Education (Save) repayment plan who have been making payments for at least 10 years and originally borrowed $12,000 or less for their education.

The White House stated that this move will notably benefit community college and other borrowers with smaller loans, expediting their journey to becoming debt-free. The Save repayment plan, created by the Biden administration, currently has 7.5 million participants, all of whom are eligible for loan forgiveness after 20 to 25 years of repayments. Notably, individuals with smaller balances will now be on a faster 10-year forgiveness track.

President Biden has already cancelled $138 billion of student debt for nearly 3.9 million people through executive actions. Furthermore, the Department of Education will start reaching out to individuals who are eligible for relief but are not currently enrolled in the Save plan. The US carries a staggering $1.77 trillion in student debt, with the average federal student loan debt per person standing at over $37,000, as reported by the Education Data Initiative. The Supreme Court's previous ruling found that the President's proposed student debt cancellation of up to $20,000 exceeded his authority, leading to the current targeted relief plan.