Student Loan Forgiveness: The Final Frontier

After years of working to pay back your student loans, you may be curious about whether you'll get any student loan forgiveness.

   President Joe Biden (Photo by Alex Wong/Getty Images) 
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President Joe Biden (Photo by Alex Wong/Getty Images)

Student loans can cause you to feel the red, white and blue.

The following information is important.

Student loans are a type of financial aid that students can use to pay for their education.

If you have student loans, you may wonder what the future holds for your student loan debt. If that answer is uncertainty, you're in good company. Student loan forgiveness and the student loan payment pause could be on your mind right now. President Joe Biden is weeks away from announcing billions of dollars of student loan forgiveness for millions of students who have loans. You don't know if you qualify or how much debt you could get forgiven if eligible, though.

Biden's student loan forgiveness: when will Biden cancel student loans?

  Biden will likely announce his decision whether to cancel student loans before August 31, 2022. As a presidential candidate, Biden called on Congress to cancel up to $10,000 of student loans for student loan borrowers. However, as president, Biden has focused on targeted student loan cancellation rather than wide-scale relief. For example, Biden has canceled more than $30 billion in student debt for 200K borrowers and public servants.If Biden cancels the loans, he will most likely cancel $10K of debt for each borrower. That said, progressive members of Congress have renewed their push for Biden to provide relief that could reach up to $50K per borrower. The amount may be limited by an income limit which would mean fewer people will qualify for the relief.

The question of whether to extend the student loan payment pause:

Second, student loan borrowers want to know if the student loan payment pause will end on September 1, 2022. Currently, the student loan payment pause will end on August 31. With only a month away, student loan borrowers have not received official guidance about whether the moratorium will be extended. Since March 2020, students have not been required to make a single payment on their loans. Why? Congress passed historic relief for students as part of the Cares Act-the $2 trillion stimulus package that President Donald Trump signed into law. Trump and Biden extended the student loan moratorium six times. The Biden administration has been relatively silent about any potential extension of this relief measure for students  The U.S Secretary of Education Miguel Cardona has indicated that there is a chance that Biden could extend this moratorium for students  So far, it's unclear whether or not this measure will be extended by –Presidential hopeful Joe Biden.

  • Refinancing student loans (lower interest rate + lower payment)
  • Income-driven repayment (lower payment)
  • Federal student loans can be forgiven under certain conditions.

Borrowers with student loans can now have their debt forgiven.

Senators have proposed major changes to student loan forgiveness

How to qualify for the $6 billion in student loan forgiveness

The Department of Education has announced a major overhaul of student loan servicing.