President Joe Biden will not cancel student loans before student loan relief ends.
Here’s what you need to know – And what this means for your student loans,
Progressives and other student loan activists in Congress are mounting pressure on Biden to cancel student loans on a wider scale before temporary student loan relief as a result of the Covid-19 pandemic ends on January 31, 2022. However, don’t expect student loan cancellations for all of your student loan debt. While Biden has canceled $11.5 billion of student loans this year, progressives say it is only a tiny fraction of the $1.7 trillion of total outstanding student loan debt. (3 things for your student loans right now). Some activists want student loans of up to $50,000 to be canceled for each borrower. Others advocate for total student loan cancellation. Despite these repeated calls – which range from personal rallies to online conferences to social media posts – it appears Biden will not cancel student loans before temporary student loan relief ends. (That said, the Education Department announced that $2 billion of student loans would be canceled within weeks).
Student loan forgiveness: Mixed message hurts
While progressives champion “student loan forgiveness” or “student loan cancellation”, there are different and often conflicting messages that complicate the overall message. While progressives are united on the idea of student loan cancellation, different voices express different points of view. For example, it is not uncommon to find proposals from legislators and advocates, among others:
- cancel all student loans
- Cancel $50,000 of Student Loans
- Cancel student loans up to $50,000
- Cancel student loans up to $50,000, but only federal student loans for borrowers earning up to $125,000.
(Here’s who qualifies for student loan forgiveness right now). While legislators are entitled to their own views, agreeing on a specific, unified principle will be more effective. For example, Senate Majority Leader Chuck Schumer (D-NY) and Sen. Elizabeth Warren (D-MA) support the final motion, the dominant motion in Congress. (These borrowers do not qualify for limited student loan forgiveness).
Student loan cancellation is not a zero sum game
Progressives in Congress are focusing on $50,000 of student loan cancellation. There is no laxity or compromise on this number. Their main strategy is to “pressure” them to cancel student loan debt through an executive order. (How to Apply for Student Loan Forgiveness During the Biden Administration). Congress won’t pass — or even vote — legislation to cancel student loans. Biden has said for years that he does not support the cancellation of student loans of up to $50,000. He has consistently supported up to $10,000 for student loan cancellations for student loan borrowers, has Congress pass legislation, and said he would happily sign a bill. The president has repeatedly acknowledged that he does not have the executive authority to cancel everyone’s student loans. (Here’s how to qualify for automatic student loan cancellation). Speaker of the House Nancy Pelosi (D-CA) has echoed this position, noting that the president does not have such authority; Only Congress does. So, why are progressives in Congress focusing on $50,000 of student loan cancellation? It is important to stick to principles and defend your position. However, it appears to be a futile attempt to reach a consensus if their goal is to largely cancel student loans in the next two months. Some might argue that even the president can compromise his office. However, Congress makes laws and authorizes federal spending, not the President. If progressives in Congress wanted to cancel student loans for their constituents, a more pragmatic approach would be practical on both the amount of student loan cancellation and an alternative legislative route to student loan forgiveness. Otherwise the deadlock will remain. ,How to Apply for Limited Student Loan Forgiveness,
What does this mean for your student loans?
This has significant implications for your student loans. While Biden can change his position at any time, it is unlikely that Biden will cancel student loans before the temporary student loan relief from the Covid-19 pandemic ends. This means you should expect to resume federal student loan payments beginning February 1, 2022. You should also develop a game plan for student loan repayment. Now is the time to take control of your student loans and fully understand all of your options for paying off student loan debt. Here are some popular ways to pay off student loans and save money:
Student Loans: Related Reading
How to Qualify for Automatic Student Loan Forgiveness
How to Apply for Limited Student Loan Forgiveness
Education Department to cancel $2 billion student loans
Here’s Who Eligible For Student Loan Forgiveness Right Now