President Joe Biden announced the early implementation of the SAVE income-driven repayment plan, eliminating $1.2 billion in student debt for 153,000 borrowers.

The plan benefits those who have been in the SAVE repayment program for over 10 years and initially borrowed $12,000 or less, often aiding community college attendees.

This debt relief is a strategic effort by Biden to engage young voters and address the escalating student loan debt crisis as the November election approaches.

To date, Biden's administration has cancelled $138 billion in student debt for nearly 3.9 million people through various executive actions.

Education Secretary Miguel Cardona supports the plan, asserting that borrowers with long-term, low-balance payments warrant this financial relief.

The Education Department aims to finalize one-time account adjustments for income-driven repayment and Public Service Loan Forgiveness by July 1.

Companies such as SoFi Technologies, Navient, NelNet, and SLM Corp are pertinent to discussions on student loans and may be impacted by these policy changes.

While proponents argue the plan enables borrowers to pursue opportunities and stimulates the economy, critics, particularly Republicans, decry it as an improper use of taxpayer funds.

In addition to policy announcements, President Biden's schedule includes fundraising events in Los Angeles and the Bay Area.