If Biden Extends Student Loan Benefit After Sept 30, Here Are 5 Options

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If Biden extends his student loan exemption after September 30, here are 5 options.

Here’s what you need to know:and what does it mean for student loans

Student loans

The student loan exemption is expected to end on September 30, 2021. However, student loan borrowers and members of Congress are equally asking President Joe Biden to use executive powers to extend the student loan exemption at a later date. A recent poll showed that 90% of student loan borrowers say they are not ready to start paying off student loan from October 1st… Others say there were 18 months of student loan benefits as well as student loan cancellation. What Will Biden Do About Student Loan Benefits?

Here are five options:

1. Option # 1: Biden Does Not Extend Student Loan Benefits

The first option is the baseline scenario: Biden does not renew the student loan exemption after September 30, 2021. This means that federal student loan payments are due again starting October 1, 2021, and your normal interest rate will also resume. This is probably the last choice of many student loan borrowers, but in the absence of any announcements of extending student loan benefits (which has not happened yet), this seems to be the most likely scenario. Biden would argue that the economy is improving, jobs are high, unemployment is low, and vaccination rates are high. In addition, most student loan borrowers have not paid federal student loans since March 2020. Opponents of the decision say it could lead to an increase in student loan default if student loan borrowers are not financially prepared due to the Covid-19 pandemic.




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