The Biden administration recently released a long awaited memorandum In relation to the President’s authority to cancel federal student loan debt.
Progressive Democrats at the start called upon the administration As for the release of the memorandum, hopefully it will serve as proof that the president has the power to legislate student loan forgiveness. However, the memo was heavily revised, leading to speculation about its contents.
Although the public still doesn’t know what the memo said, one expert says its existence is a good sign that President Joe Biden is discussing student loan forgiveness with Education Department officials. In addition, experts note that the memo also cannot state whether the president can use executive action. cancel student loans, but if he should.
Keep reading to learn more about the potential for student loan forgiveness, a few months before federal loan payments begin again. If you are struggling to manage your student loans, Consider Refinancing for Better Terms Like the low interest rate on credit.
Expert: Student loan forgiveness memo is ‘pleasant’
The fact that the Biden administration is still discussing the idea comprehensive student loan forgiveness There’s “pleasant” news for borrowers hoping to find some sort of debt relief, according to a student loan law expert. Daily Jimenez, He is a professor at the University of California, Irvine School of Law and director of the school’s Student Loan Law Initiative.
Although the memorandum does not clarify President’s Power to Cancel Federal Student Loans, Jimenez believes Biden has that power.
“I’ve always thought they had the right [to cancel student loan debt], so I can’t imagine that the memo says otherwise…” Jimenez said. “I think there’s a legal argument that he could wipe out the whole thing — like literally zero for everyone.”
But instead of giving the much awaited reply President’s ability to forgive debts, Jimenez believes the memo is more likely a political analysis of how Biden should legislate student loan forgiveness. in addition to its legal right to enact federal student loan forgivenessThe president must exercise his “discretionary authority,” Jimenez said – in other words, not whether he can cancel the debt, but whether he should.
Borrowers will have to wait a bit longer to get a final answer on comprehensive student loan forgiveness. In the meantime, consider alternative options such as refinancing private student loans. You can do this Compare offers for free On Credible’s online loan marketplace.
how to prepare for student loan payments for resume
An important point of this memorandum is that government entities Still discussing student loan forgiveness measures, although not It’s the first time he’s said this. Recently the Education Secretary Miguel Cardona said that the Department of Education and the Department of Justice were still talking About “comprehensive” loan cancellation.
Without a clear idea of whether President Biden will cancel student loan debt, it may be worthwhile to rethink your student loan repayment strategy first. federal student loan payment resume in February 2022. Here are some ways to prepare:
- Familiarize yourself with your student loan repayment plan. log in Federal Student Aid (FSA) Website To learn more about your remaining federal loan balance, the current interest rate and monthly payment amount.
- Apply for additional federal forbearance. If you won’t be ready to resume payments after the COVID-19 administrative forbearance period ends, consider applying for a federal forbearance of up to 36 months through one. economic hardship Or unemployment postponement request,
- Reduce your student loan payments by refinancing. a Recent credible analysis found that borrowers who refinanced for longer loan periods reduced their monthly student loan payments $250. more than without adding to the total interest cost.
keep in mind that Refinancing Your Federal Student Loans A personal loan will make you ineligible for certain borrower protections such as an income-driven repayment plan (IDR), as well as any future student loan forgiveness measures.
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