President Joe Biden canceled nearly $ 3 billion in student loan debt…
Here’s what you need to know – and what does this mean for your student loans…
Since becoming president in January, Biden has canceled more than $ 2.8 billion in student loans, including another major announcement of the cancellation of student loans today:
- Biden canceled $ 1 billion student loans for 72,000 student loan borrowers.
- Biden canceled another $ 1.3 billion in student loans for 41,000 borrowers with full and permanent disabilities.
- Biden granted student loan exemptions to 1.1 million student loan borrowers who defaulted on their FFELP loans.
- Biden today canceled a $ 500 million student loan debt for 18,000 student loan borrowers under the student loan borrower repayment rule.
Student Loan Cancellation: What America Thinks
Student Loan Cancellation: Supporters
Proponents of student loan cancellation are divided over Biden’s actions to cancel the student loan. For example, some supporters supported Biden’s plan to cancel a student loan. In just five months, Biden quickly canceled student loans for over 1 million student loan borrowers. This is in addition to making student loan repayments easier, such as suspending student loan payments, setting the interest rate to 0%, and suspending collection of all student loans by default. US Department of Education estimates that from March 2020 to September 30, 2021 student loan borrowers Receives Over $ 90 Billion of Student Loan Cancellation as a result of the exemption from the student loan under the Cares Act incentive.
Other supporters say Biden did not accept the large-scale student loan abolition. These supporters are asking whether the student loan cancellation has been canceled… While they admit that Biden canceled student loans under certain circumstances, they want student loan forgiveness for all or nearly all of the $ 1.7 trillion student loan debt. Some proponents would be happy with a $ 10,000 student loan cancellation, while other proponents are demanding a $ 50,000 student loan cancellation. While $ 3 billion is a high-profile figure, some proponents point out that it is roughly 0.1% of the $ 1.7 trillion in outstanding student loan debt.
Student Loan Cancellation: Opponents
Opponents of student loan cancellation also have mixed feelings. For example, some opponents of large-scale student loan cancellations support targeted student loan forgiveness. Why? They understand that student loan borrowers who are permanently disabled or who have been victims of fraud should be forgiven for their student loans. At the same time, there are opponents of student loan abolition who do not want the federal government to pay on the student loan. These opponents believe that paying off the student loan is the responsibility of the individual, not the federal government. They see canceling student loan as a major transfer of wealth from the state to borrowers for student loans.
Student Loan Cancellation: Next Steps
There will be more student loan cancellations… There is at least Four Ways Biden Can Decide To Cancel A Student Loan… Expect more student loan forgiveness. However, the cancellation of a student loan cannot be large-scale. or available to every student loan borrower… Progressives in Congress may continue to pressure Biden to demand widespread student loan forgiveness. After becoming president, Biden focused on forgiving student loans for specific populations. Expect this trend to continue. The appointment of Richard Cordray as head of the Federal Student Assistance Program will help secure student loan cancellations to more student loan borrowers who are eligible for student loan forgiveness. (You can find out if you are eligible for Biden student loan forgiveness here). What about a large-scale student loan abolition? This is still possible, and clarity will become greater when the U.S. Department of Education presents Biden with a legal memo in which assess Biden’s power as president to cancel student loan debt without further permission from Congress. However, there are several reasons why Biden will not accept a large-scale student loan cancellation. Today’s announcement is another reminder that student loan cancellation is not going anywhere, but may look different than the student loan forgiveness that many student loan borrowers are hoping for.
Make sure you understand all of the student loan repayment options. There are several ways to save money and pay off student loans faster:
Student loans: additional information