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President Joe Biden (Photo by Chip Somodeville / Getty Images)
Here’s how much student loan debt President Joe Biden canceled – and how much student loan debt is left…
Here’s what you need to know.
Student loans
After becoming president in January, Biden canceled more student loan debt than any other president… This includes:
- $ 5.8 billion student loans for student loan borrowers with full and permanent disability;
- $ 1.3 billion – student loan cancellation for 41,000 student loan borrowers in March;
- over $ 1.5 billion in student loans through borrower protection prior to repayment for nearly 92,000 student loan borrowers; and
- Another $ 1.1 billion in student loans were canceled today due to borrower protection to maturity.
In total, Biden canceled nearly $ 9.8 billion in student loans. (Here how to know if you are eligible for a $ 9.8 billion student loan forgiveness). This student loan cancellation focused on two main areas: complete and permanent disability and borrower protection until maturity. Full and permanent disability is a federal student loan forgiveness for student loan borrowers who are disabled and can no longer receive income. Borrower protection from repayment is an Obama-era rule whereby federal student loans are forgiven for student loan borrowers who have been misled by their college or university.
Biden and Trump also helped cancel $ 110 billion in student loans.
In addition to canceling a $ 8.7 billion student loan, Congress, Biden and President Donald Trump also canceled additional $ 110 billion student loan… In March 2020, Congress passed the Nursing Act – a $ 2.2 trillion stimulus package – that provided substantial assistance to federal student loan borrowers. This includes a suspension of student loans and a 0% interest rate on federal student loans. As a result, the US Department of Education estimates that borrowers of student loans received monthly savings of $ 5 billion. The Student Loan Benefit under the Care Act expired on September 30, 2020. Trump extended the student loan exemption until December 31, 2020, and then extended it again until January 31, 2021. Biden then extended the student loan exemption until September 30, 2021, and then granted a final extension until January 31, 2022. So Biden will cancel another $ 60 billion in student loans for a one-year extension of $ 5 billion a month in student loan benefits.
Student Loan Forgiveness: Latest Student Loan Debt Statistics
Overall, including exemptions from student loans under the Care Act, Biden has canceled about $ 69.8 billion in student loans since his election as president. How does this compare to total student loan debt? V latest student loan debt statistics show that there are 45 million student loan borrowers who collectively owe $ 1.7 trillion on student loans. Over 90% of these student loans are federal student loans. Biden’s student loan forgiveness focuses solely on federal student loan forgiveness as it is difficult for the federal government to cancel private debt. As a percentage, the amount of student loan forgiveness today is relatively small. For example, a $ 9.8 billion student loan cancellation is approximately 0.6% of the total outstanding student loan debt. This means outright cancellation of the student loan. Considering a $ 69.8 billion student loan cancellation, that’s roughly 4% of the student loan debt. This does not include interest accrual, but also includes student loan cancellation, because for the purposes of forgiving a student loan through an income-based repayment plan, or forgiving a government service loan, these defaults during the Covid-19 education loan exemption “count” qualified payments. …
Will your student loans be canceled?
Student Loan Cancellation Sends Three Messages… While Biden’s student loan forgiveness may seem like a small amount on a relative basis, it depends on how you feel about canceling your student loan. Biden has canceled more student loans than any other president. Congress, Biden and Trump have provided an unprecedented billion dollar student loan exemption that will last over 22 months. Will the total student loan debt be canceled? Canceling a student loan may help more borrowers, but that doesn’t mean that Biden will cancel all student loans.… Even the student loan forgiveness from Senator Elizabeth Warren (D-MA) and Senate Majority Leader Chuck Schumer (New York) requires a limited student loan forgiveness only for federal student loan borrowers who earn up to $ 125,000 a year. What next when canceling a student loan? Biden has repeatedly stated that he does not believe that unilateral right to cancel large-scale student loan… The next step for student loan forgiveness not just about Biden’s legal ability to cancel student loans… Biden will continue to cancel more student loans through targeted student loan cancellations and will work with Congress to ease the path towards student loan forgiveness for millions of Americans. Student Loan Cancellation Has Been Spotlight on Capitol Hillbut not required for outright student loan forgiveness. This includes streamlining income-based repayment plans and revising the government service loan forgiveness program. However, the large-scale student loan abolition called for by Warren, Schumer and others does not appear to materialize.
Will your student loans be canceled? There are many ways to get a student loan forgiveness, whether it is Biden’s student loan forgiveness or the cancellation of an existing federal student loan. Immediate student loan cancellation is likely to not be available to everyone and even most student loan borrowers. If you have student loans, here are some popular ways to save money:
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