President Joe Biden is unlikely to cancel student loans until student loan relief ends.
Here’s what you need to know – and what it means for your student loans.
Congressional progressives and other student loan activists are increasingly pressuring Biden to enact full-scale student loan cancellation before temporary student loan relief in the wake of the Covid pandemic -19 does not expire on January 31, 2022. However, don’t expect the student loan to write off all of your student loan debt. While Biden canceled $ 11.5 billion in student loans this year, progressives say it is a small fraction of the $ 1.7 trillion in total student debt outstanding. (3 things to do for your student loans right now). Some activists want up to $ 50,000 in canceled student loans for each borrower. Others advocate total cancellation of student loans. Despite these repeated calls – which range from in-person gatherings and online conferences to social media posts – it looks like Biden is unlikely to cancel student loans for every student loan borrower until the end of the year. temporary student loan relief. That said, Biden could continue to cancel student loans in a targeted fashion. (For example, the Department of Education announced that $ 2 billion in student loans will be canceled in a few weeks.)
Student loan cancellation: a mixed message harms the cause
While progressives advocate for âstudent loan cancellationâ or âstudent loan cancellationâ, there are disparate and often conflicting messages that complicate the overall message. As progressives unite on the idea of ââcanceling student loans, different voices are expressing different views. For example, it is not uncommon to find proposals from legislators and lawyers that include, among others:
- Cancel all student debts
- Cancel $ 50,000 in student loans
- Cancel up to $ 50,000 in student loans
- Cancel up to $ 50,000 in student loans, but only federal student loans for borrowers who earn up to $ 125,000.
(Here’s who qualifies for the student loan waiver right now). If legislators are entitled to their own opinions, it would be more effective to agree on a precise and unifying principle. For example, Senate Majority Leader Chuck Schumer (D-NY) and Senator Elizabeth Warren (D-MA) support the Final Proposal, which is Congress’ main proposal. (These borrowers are not eligible for the limited student loan exemption).
Canceling a student loan is not a zero-sum game
Progressives in Congress are intensely focused on canceling $ 50,000 in student loans. He does not appear on any hesitation or compromise on this number. Their main strategy is to “pressure” Biden to write off student loan debt through an executive order. (How to request a student loan discount during the Biden administration). Congress will not pass a law – or even vote – to reverse the cancellation of student loans. Biden has said for years that he does not support canceling student loans of up to $ 50,000. He has consistently supported up to $ 10,000 in student loan cancellations for student loan borrowers, called on Congress to pass a law, and said he would gladly sign a bill. The president has repeatedly acknowledged that he does not have the executive power to cancel everyone’s student loans. (Here’s how to qualify for automatic student loan cancellation). House Speaker Nancy Pelosi (D-CA) echoed this position, noting that the speaker does not have such authority; only Congress does. So why do the progressives in Congress continue to focus on canceling $ 50,000 in student loans? It is important to stick to principles and stand up for your position. However, if their goal is to achieve a full-scale student loan cancellation over the next two months, it seems like a futile attempt to reach consensus. (Prepare for the end of student loan relief). Some might argue that the president could also compromise his position. However, Congress makes laws and authorizes federal spending, not the president. If progressives in Congress want student loan cancellation for their constituents, a more pragmatic approach to both the amount of student loan cancellation and an alternative legislative route to student loan cancellation would be practical. Otherwise, a stalemate will continue. (How to Apply for a Limited Student Loan Discount).
What this means for your student loans
This has important implications for your student loans. While Biden can change his position at any time, Biden is unlikely to cancel student loans until temporary student loan relief for the Covid-19 pandemic ends. This means that you should expect to restart federal student loan payments as of February 1, 2022. You should also develop a student loan repayment game plan. Now is the time to take control of your student loans and fully understand all of your options for paying off student debt. Here are some popular ways to pay off student loans and save money: