Biden faces renewed pressure from Dems to cancel $ 50,000 student loan debt on borrower and extend payment freeze

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Key Democrats are once again calling on Biden to cancel student loans and extend the freeze on student loan payments. (iStock)

A group of prominent Democrats on Tuesday once again called on President Joe Biden to extend the freeze on federal student loan payments and to write off the $ 50,000 student debt to the borrower through a decree.

At a joint press conferenceSenate Majority Leader Chuck Schumer, Massachusetts, Senator Elizabeth Warren, Massachusetts, and Rep. Ayanna Pressley, Massachusetts urged Biden to use his executive powers to make these changes. Currently, Federal student loan payments will begin again in October. but Pressley said the recent spike in COVID-19 Delta infections justifies the postponement.

“We urge President Biden to act urgently,” Pressley said at a news conference. “Failure to act would be shameless and undermine our economic recovery.”

Even if the Biden administration decided to take action, such action would not help private student loan borrowers because they are not eligible for a federal student loan waiver related to COVID-19, nor are they eligible for forgiveness. However, they still have options such as refinancing student loans. Refinancing can help borrowers save on monthly payments through a lower interest rate. Visit Credible for your personalized rating

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This is not the first time Democrats have called for an extension of the moratorium on student loans. Previously, Democratic MPs sent letter to Biden with the results of their inquiries to student loan servicing agencies showing that many were concerned about their ability to stop deferring student loan payments.

Lawmakers are now renewing this appeal.

“If payments resume on October 1, millions of students, borrowers and parents will suddenly be forced to return to repayment at the same time, even those who live paycheck to paycheck or have no paycheck at all,” Schumer told the news. conference. “It could stunt our economic recovery and put millions of student loan borrowers on the brink of financial ruin.”

If Biden extends the federal student loan payment freeze or decides to cancel any student loan amount, private student loan holders will not be eligible for these benefits. If you are interested in refinancing your private student loans as an alternative, you should visit Credible to see what options are available to you.

DEMOCRATS WANT FEDERAL STUDENT LOANS SUSPENDED BEFORE MARCH 2022: HERE ARE OPTIONS PRIVATE BORROWERS HAVE

What to do if you have private student loans

Just because private student loans do not qualify for federal payment freeze or potential forgiveness programs does not mean that private borrowers have no choice. Here are some they might consider:

  1. Refinance a Private Student Loan
  2. Talk to your lender about a deferral
  3. Go to Forwarding Student Loan

1. Refinance a private student loan: Given the record low interest rates, now is the time to consider refinancing if you have private student loans. This can help borrowers save on their monthly payments and on the amount they pay over the term of the loan. Visit Credible to pre-qualify in minutes without affecting your credit rating.

STUDENT LOAN REFINANCING RATES FALL AGAIN due to record low rates: HOW TO FIND A RATE

2. Talk to your lender about the deferral: If due to your circumstances you are unable to make payments at all, most private lenders will work with borrowers on deferral options, allowing them to pause student loan payments due to economic hardship or unemployment. This option allows borrowers to suspend payments for a specified period without charging interest. Borrowers should check with their service staff to find out if this option is available.

3. Make a student loan waiver: If you are not eligible for a deferral or your service center does not offer one, some private lenders offer deferral options. It also allows borrowers to pause their payments, but interest will still be charged on the loan balance while payments are paused.

While deferral and abstinence require proof of financial distress, anyone can apply to refinance a student loan and benefit from the potentially lower monthly payments. Now that interest rates are at an all-time low, it might be a good time to refinance your private student loans. You can contact a student loan specialist at Credible and get answers to all your questions.

Have a financial question but don’t know who to contact? Write to a safe money expert at moneyexpert@credible.com and your question can be answered by Credible in our Money Expert column.

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