If you expected large-scale student loan forgiveness to be on this list of student loan relief, you’re wrong.
Here’s what you need to know.
In a major announcement On Thursday, US Secretary of Education Miguel Cardona outlined his vision for college affordability. A glaring omission: the large-scale cancellation of student loans. While Cardona noted that rising tuition fees have resulted in substantial student loan debt for many Americans, he did not refer to mass student loan forgiveness as a solution for student loan relief. (Where Biden stands on student loan cancellation).
“It’s unacceptable in the United States to have a post-secondary education system that further separates the haves and the have-nots,” Cardona said. “It’s also unacceptable to be burdened with unmanageable loan debt for decades because you chose to get a college degree. Today, too many talented Americans choose not to enroll in higher education due to fear of debt and a sense that college is out of reach. We maintain a posture of neglect when post-secondary education is out of reach for students and their families.
Student loans: Biden plans to address college affordability
Cardona outlined several key college affordability priorities:
Targeted cancellation of student loans
The Biden administration will pursue targeted student loan cancellation. This is good news for some student borrowers who qualify. Biden has forgiven $15 billion in student loans since becoming president. Who will get targeted student loan forgiveness? Beneficiaries so far include student borrowers applying for government loan forgiveness, student borrowers with total and permanent disabilities, and student borrowers who have been misled by their college or university. (Here’s Who Won’t Get Student Loan Forgiveness).
Major Changes to Public Service Loan Cancellation
Biden has made major changes to student loan forgiveness. (Do you qualify for $5 billion in student loan forgiveness?). For example, more student borrowers will get student loan forgiveness through the Public Service Loan Forgiveness Program. Student loan borrowers can complete a limited waiver by October 31, 2022 to count past student loan repayments that were previously ineligible.
Improving student loan repayment plans
“Nobody should be forced to make a payment they can’t afford,” Cardona said. This is especially important as student borrowers begin repaying federal student loans beginning May 1, 2022. Student borrowers experiencing financial hardship, including borrowers in default or in default, will be particularly targeted to move on. to reimbursement. (7 ways to get a lower student loan repayment).
Holding Colleges Accountable
The Biden administration will hold the colleges accountable. It’s not for the high tuition, though. Rather, it is for colleges and universities misleading student borrowers. Student loan borrowers can obtain total forgiveness of the student loan under defense of the borrower until repayment. Cardona also wants to have a strong gainful employment rule to own for-profit schools. (How Federal Student Loans Will Change This Year).
What’s happening with student loan forgiveness?
Biden supports targeted student loan cancellation and large-scale student loan cancellation. For example, Biden is ready to forgive student loans for millions of student borrowers. He wants Congress to immediately cancel up to $10,000 in student loans for borrowers. However, Congress failed to act. Instead, progressive members of Congress berate Biden for not canceling student loans for student borrowers. They sent Biden a letter demanding that he issue a student loan memo that could determine whether he has the legal authority to enact full-scale student loan forgiveness. To date, this note has not been published. When asked at a White House press conference if he would carry out large-scale student loan forgiveness, Biden said this.
With student loan relief ending soon, prepare to resume student loan repayments soon. Large-scale student loan forgiveness may never happen. Therefore, understand all your alternative options. When evaluating options, be sure to consider: