President Joe Biden campaigned to cancel a $ 10,000 student loan debt as a presidential candidate, but his government was unable to provide a large student loan forgiveness more than a year after his term. However, Biden “has not ruled out” student debt write-offs, said White House spokeswoman Jen Psaki he said at a press conference last week.
“And I would note that, again, he would encourage Congress to send him a bill that cancels out $ 10,000 in student debt, something he talked about and looked forward to signing in the campaign,” Psaki added.
Keep reading for a full timeline of Biden’s progress on student debt relief, from his observations as a presidential candidate to the present day. And if you are looking for ways to manage your student loan debt, one strategy is to refinance into a private loan with a lower interest rate. You can visit Credible to compare student loan refinancing rates for free without affecting your credit score.
GUIDE FOR STUDENT LOAN FORGIVENESS PROGRAMS
Biden again invokes a student loan forgiveness in Congress
This is not the first time the secretary of state has said that the president wants the Democrats in Congress to pass legislation to write off student debt. Psaki told a news conference on December 14 that Biden was “pleased to sign” a bill in Congress.
But it would be difficult for Congress to pass legislation aimed at canceling student loans, as Democrats hold only a slim majority in Parliament and the Senate. A student debt write-off bill would need the support of any moderate Democratic senator to pass – and Congress could not push other parts of Biden’s agenda, including the Build Back Better Act.
The Progressive Democrats, meanwhile, are urging the president to forgive student loans through executive action, arguing that Education Secretary Miguel Cardona has the legal authority to pay off federal student debt. However, some lawmakers do not believe Biden has the power to cancel student loans, including House Speaker Nancy Pelosi.
Even if the president is able to enact a broad student loan write-off, not all borrowers will be eligible. Some 2.4 million private student loan borrowers will not benefit if Biden cancels his federal student debt. If you’re among the many Americans with private student debt, you may want to consider refinancing to reduce your monthly payment or pay off the debt faster. You can learn more about student loan refinancing by visiting Credible.
WHAT YOU NEED TO KNOW ABOUT THE TEACHER LOAN FORGIVENESS PROGRAM
Biden’s student loan forgiveness policy timetable
During his presidency, Biden oversaw a series of administrative changes that resulted in the write-off of student loans worth more than $ 17 billion to borrowers who met the criteria for certain programs. reports the Ministry of Education. But he has not yet managed to carry out the extensive debt write-off for which he once campaigned. The following is a complete timetable for the Biden government’s student loan relief measures:
- March 22, 2020: During the presidential campaign, Biden supported the forgiveness of “at least” $ 10,000 in student loan debt per borrower on Twitter. Then, in November 2020, he said as president-elect that the cancellation of a student loan “must be done immediately”.
- January 20, 2021: In Biden first day at the officeextended the suspension of the federal student loan until September 2021. Since then it has issued three more extensions, with the most recent moratorium ending in September 2022.
- May 28, 2021: Biden announced his proposal for the 2022 federal budget, which did not include funding for student loan write-offs. The president’s proposed 2023 budget also rules out debt relief.
- June 16, 2021: The Department of Education has approved 18,000 borrower advocacy claims for former ITT Tech students, canceling $ 500 million in student debt. A number of approvals have been issued since then, bringing the total amount of borrowing defenses to $ 2 billion since Biden took office.
- August 19, 2021: As part of the regulatory changes introduced by the Biden government, more than 323,000 total and permanent disability (TPD) borrowers have been eligible for $ 5.8 billion in student loan rebates. That number has since risen to more than $ 7 billion for 400,000 borrowers.
- August 26, 2021: The Department of Education announced $ 1.1 billion in debt relief for an additional 115,000 borrowers who attended the ITT Technical Institute through the closed school exemption program.
- October 6, 2021: The Biden government made changes to the Public Service Debt Forgiveness (PSLF) program, bringing 550,000 borrowers closer to achieving a loan waiver. Since then, more than 100,000 borrowers have been eligible for $ 6.4 billion in relief under the limited PSLF waiver.
- December 8, 2021: Prominent progressive Democrats, including Senate Majority Leader Chuck Sumer, Sen. Elizabeth Warren and MP Ayana Presley, urged Biden in a letter to pardon student loan debt of up to $ 50 per loan. In January, more than 80 Democratic lawmakers joined the case.
- March 3, 2022: White House Chief of Staff Ron Klein said in a podcast that the president was considering “writing off debt” when federal student loan payments resumed.
- April 6, 2022: As part of Biden’s most recent extension, student borrowers who are in arrears and default will be able to restart payments in good standing. The president did not mention the cancellation of student loans in his announcement, although Psaki later said that he has not “ruled out” the possibility of a large debt write-off.
PREVIOUS STUDENT LOAN BORROWERS WILL RECEIVE A “NEW START” WHEN THE WAIT IS OVER
As the future of student debt relief remains unclear, some borrowers may be looking for alternative ways to repay their loans. It may be possible for student loan borrowers to lock in on more favorable terms through an Income Repayment Plan (IDR) or through refinancing into a private student loan.
Keep in mind that refinancing your federal loans through a private lender would make you ineligible for income-based repayment plans, administrative tolerance for COVID-19, and forgiving federal student loans in the future. But if you do not intend to use these programs, then refinancing can be worth it.
You can compare current student loan refinancing rates in the table below. You can then use Credible Student Loan Computer to determine if refinancing is the right strategy for your financial situation.
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