Early Student Loan Forgiveness to Begin in February Under New SAVE Plan

Borrowers who originally borrowed $12,000 or less can have their debt forgiven after 10 years, with additional benefits set to roll out in July 2024.

Under the new SAVE plan, student loan borrowers who originally borrowed $12,000 or less can have their debt forgiven after 10 years of payments, a significant reduction from the previous requirement of 20 years.
Borrowers with original balances between $12,000 and $21,000 can also receive loan forgiveness in less than 20 years, with the timeline increasing by one year for each additional $1,000 borrowed.
The new provisions will begin benefiting borrowers as early as February 2024, ahead of the original July 2024 implementation date.
Eligibility for the accelerated forgiveness requires enrollment in the SAVE plan and applies only to Direct federal student loans.
Additional features of the SAVE plan, including a new repayment formula reducing monthly payments for undergraduate borrowers by up to 50%, will go into effect in July 2024.