Student Loan Debt Forgiveness – Should You be Looking Forward to It?
Student loan debt is one of the biggest issues that the United States faces today. Student borrowers have been very vocal about the burdening debt and are optimistic towards the Biden administration. The new democratic government has plenty on its plate in regards to the debt issues. Nevertheless, borrowers are urging Congress to address the student loan debt forgiveness issue as soon as possible.
Will the Biden Administration Forgive Student Loan Debts?
Even though Biden made promising statements in favor of student loan debt forgiveness during his presidential campaign, it is too early for sighs of relief. Furthermore, it is important to note that he has not made concrete statements about this issue. No statement from him proves his intentions of signing an executive order. Recent statements show that he would rather leave this decision to Congress.
However, most of his comments on the student debt situation show lean strongly towards forgiveness. Thus, the Biden administration brings plenty of hope for the students across the US. His propositions and favorable legislation show that he sides with giving 10,000 dollars exemption on student loan debt. Moreover, he also showed interest in eradicating loan payments for borrowers who make 25,000 dollars or less annually.
Biden also believes that tuition fees should be of no cost for undergraduate programs at public colleges. However, this is likely to apply to students who make 125k dollars or less annually. These promising statements show his urge to address the issues with student loan forgiveness programs. However, it is too soon to decide whether he intends to take control of this issue. Congress is likely to approve the funds for student loan forgiveness.
Whether the Biden administration will act upon these statements or not, there is still plenty of time for these policies to come to fruition. There is also a possibility that his statements were purely political and had no concrete intentions behind them. For now, you can only rely on time to unfold events that explain the gravity of the situation.
Tuition-free College Policy
The tuition-free college will be emphatic news for the current students; however, it does not have an impact on the borrowers. Borrowers should demand policies that mandate relief funds for college loan debts. If Congress cannot offer relief funds, they should at least make amends regarding loan-return regulations.
Problems with Existing Loan Debt Forgiveness Act
The Public Service Loan Debt Program (PSLF) program is swarming with issues. Fortunately, President Biden wants to make the necessary changes to improve the existing program. Since the president has the power to improve the existing program, there is a much higher chance of reforms to happen instead of the introduction to a new program.
It is difficult to promise any signs of student loan debt forgiveness in the future. Despite the positive statements, you should not have high hopes until Congress addresses this issue and there is a legitimate relief announcement. Meanwhile, you can resort to other solutions like Teacher Loan Forgiveness Programs, income-driven repayment, and others.
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