The Biden-Harris administration announced on Jan. 12 that in February, it will start providing forgiveness after as few as 10 years of payments for borrowers on the Saving on a Valuable Education Plan, known as SAVE, who originally took out $12,000 or less to pay for college.

Borrowers enrolled in SAVE who are eligible for early forgiveness will have their debts cancelled immediately starting next month, with no action on their part. To help as many borrowers as possible benefit from this action, the department is kicking off an outreach and email campaign to encourage borrowers who are not currently enrolled in SAVE to sign up because they may benefit from this shortened repayment period. The administration also announced that there are 6.9 million borrowers enrolled in the SAVE plan, more than double the enrollment on the Revised Pay As You Earn plan it replaced in August.

The shorter time to forgiveness benefit will particularly help borrowers who attended community colleges who typically borrow smaller amounts. Overall, it is estimated that the SAVE plan will make 85% of future community college borrowers debt free within 10 years. The SAVE plan will also help borrowers who are more likely to struggle with their loans, as most borrowers in default originally borrowed $12,000 or less.

“Beyond being the most affordable student loan repayment plan ever available, the Biden-Harris Administration designed the SAVE Plan to put community college students and other low-balance borrowers on a faster track to debt forgiveness than ever before,” U.S. Secretary of Education Miguel Cardona said. “Our ability to deliver this relief to borrowers months ahead of schedule is a testament to the Biden Administration’s commitment to delivering relief to as many borrowers as possible, as quickly as possible. [This] announcement gives borrowers an even greater reason to check out the SAVE plan and find out if they may qualify for earlier debt relief. With lower monthly payments, protection from runaway interest, and faster timelines to debt forgiveness, President Biden’s SAVE plan is not only benefitting millions of current borrowers but also providing the students of today and tomorrow with a more affordable pathway to college degrees and credentials.”

In February, borrowers who are eligible for forgiveness will be notified that their loans are being discharged automatically with no action needed. For information, visit studentaid.gov/announcements-events/save-plan.