According to the White House, President Joe Biden has not announced that he will grant $10,000 in student loan forgiveness. Here are the basics and implications for student loans.
Are your student loans going to be canceled? This is the question that student loan borrowers have been asking since months. Vedant Patel, a White House spokesperson, told Reuters that “no decisions have been made yet”. According to the Washington Post, a White House report claiming that there were “unsubstantiated claims” was denied by the White House.
Biden will cancel $10,000 in student loans per borrower. Student loan forgiveness will also be available to individual student loan borrowers earning up to $150,000 annually or married couples filing jointly who earn up to $300,000. The Biden administration proposed this income cap earlier this month to allow student loan forgiveness. This potential income cap is $50,000 more than the Covid-19 income limit, which was set at $75,000 for individuals.
Tomorrow, Biden could cancel student loan
Tomorrow, will Biden cancel student loans? Tomorrow, Biden will deliver the commencement speech at the University of Delaware. Although the White House claims that Biden has not yet decided on broad-scale student loan forgiveness for his country, the president could use tomorrow’s graduation to announce his plans on student loan relief. The president could refer to the next steps for student loan borrowers, regardless of whether Biden has a complete plan or an updated timeline. Biden stated that he would make a decision within weeks on whether to cancel large-scale student loans. But that was over four weeks ago. Bidens would announce a student loan forgiveness update, which would make it the second major education policy announcement in the last week. The U.S. Department of Education has announced major changes in student loan servicing
Student Loan Cancellation Happening: Next Steps
Biden’s administration reiterates that student loan borrowers are not required to pay any federal student loans. Biden has canceled $18.5 million of student loans for 750,000 borrowers. According to the president, he is not contemplating a plan to forgo $50,000 in student loan debt that progressive Democrats in Congress had championed. It would be a great deal if Biden cancelled $50,000 student loan debt.
For 36 million student loan borrowers, federal student loan debt must be eliminated. Biden’s 2020 presidential campaign has not changed his focus on student loan forgiveness to $10,000. Senator Elizabeth Warren (D.MA) is leading a group of senators that are lobbying Biden for $50,000 in student debt relief. They asked President Biden to delay a decision on large-scale student loan forgiveness. This could explain why Biden has yet to announce a plan to cancel student loans at tomorrow’s graduation. Temporary student loan relief will end on August 31, 2022, which is the next deadline for student loan borrowers. Biden’s announcement about student loan forgiveness is important. Pay attention to the end the student loan payment suspension. You should prepare a plan before student loan payments start again. These are some popular student loan repayment options:
How to Refinance Student Loans
Refinance student loans (lower interest rates + lower payments)
Income-driven repayment (lower payments)
Federal student loans are forgiven for student loan debt