Biden Wants Student Loan Borrowers To Do 3 Things During Student Loan Relief

Biden Wants Student Loan Borrowers To Do 3 Things During Student Loan Relief
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President Joe Biden wants student borrowers to do three things during student loan forgiveness.

Here’s what you need to know – And what does that mean for your student loans?

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Federal student loan payments may be on hold until May 1, 2022, but that doesn’t mean you have to sit back and relax. Since March 2020, more than 40 million student loan borrowers have enjoyed the following student loan benefits:

  • There are no mandatory federal student loan payments;
  • There is no new interest on a student loan; And
  • Not having a pool of student loans in case of default.

Biden has extended his student loan benefit for 90 days in response to the Covid-19 pandemic and the ongoing Omicron variable. (What Biden’s latest student loan forgiveness means for your student loans.) However, when announcing the fifth extension of student loan forgiveness from the Care Act, Biden encouraged student borrowers to do 3 things with their student loans to prepare for student loan repayments. (How Easier Student Loan Payments Will Be in 2022.)

1. Take advantage of US Department of Education student loan resources

The US Department of Education has several resources that can help you prepare for student loan repayments. (Here’s how to get student loan forgiveness during the Biden administration.) For example, you can learn about income-driven repayment plans, deductibles, deferments, and other ways to pay off student loans. You can get started on the Education Department website to learn more about student loan forgiveness, student loan consolidation, student loan providers, and student loan default. You can also log into your student loan account with Federal Student Aid (FSA) to check your student loan balance and manage your student loans.

2. Assessment of student loan repayment based on income

Income-driven repayment plans are a good option for federal student loan borrowers who are financially struggling to pay off student loans. There are four main income-driven payment plans: Pay As You Earn (IBR), Pay As You Earn (PAYE), Pay As You Revised Earning (REPAYE) and Pay As You Go (ICR). Income-Driven Payment Plans determine your monthly federal student loan payment based on your discretionary income, family size, and residence status. It is possible to get a monthly student loan payment of up to $0. (More forgiveness may come from the student loan.) To find out more, contact the Student Loan Service. With an income-driven repayment plan, it is also possible to get student loan forgiveness after 20 years (for undergraduate student loans) or 25 years (for graduate student loans) of monthly student loan payments. If you are already enrolled in an income-driven payment plan, be sure to update your income, family size, and residency status at least annually so that your student loan payments reflect your unique financial situation.

3. Explore public service student loan forgiveness

You may not work in the public service, but you will if you want to pay off student loans faster. Congress created the Public Service Loan Forgiveness Program in 2007 to help federal student loan borrowers obtain student loan forgiveness. (Biden will not cancel student loans before the student loan forgiveness expires.) To qualify, you will need to meet several requirements, including, among other things, working in a qualified public service or non-profit employer, making 120 monthly student loan payments, and enrolling in an income-driven repayment plan. While the Public Service Loan Forgiveness Program at one point rejected 99% of applicants, the Biden administration made major changes to the program to help more student loan borrowers obtain student loan forgiveness. Until October 31, 2022, student borrowers can submit a limited waiver to “count” past student loan payments that were not previously eligible. The Public Service Loan Forgiveness Program is still available, so if this interests you, you might consider a qualified public service job or a non-profit employer. Contact the student loan service for more details. (How to qualify for automatic student loan forgiveness).

Will Biden cancel student loans?

Student loan forgiveness advocates might support these three things, but they focus more on Biden enacting student loan forgiveness on a large scale. In Biden’s announcement of extending the temporary student loan forgiveness, Biden made no mention of canceling the student loan. While it is possible, don’t count on any large-scale student loan cancellation. It is better for you to be financially prepared for student loan repayments and to understand all your options to save money and pay off student loans faster. Here are some popular ways to pay off student loans faster:

Student loans: related reading

Do you cancel your student loan debt then?

Biden Extended Student Loan Forgiveness, But Advocates Really Want Student Loan Canceled

Student Loans May Be Paused, But This Is Why Biden Extends Student Loan Forgiveness

Biden Won’t Cancel Student Loans Before Student Loan Forgiveness Expires


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