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Warren, progressives escalate pressure on Biden to cancel student loans

Warren, progressives escalate pressure on Biden to cancel student loans
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A number of prominent Democrats are urging President Biden to cancel student debt using an executive order. (iStock)

Progressive lawmakers are ratcheting up pressure on President Joe Biden to cancel student debt to millions of federal student loan borrowers using enforcement measures.

Among them is Senator Elizabeth Warren, Democrat of Massachusetts, who has been vocal in calling for the president to provide up to $50,000 in student loan forgiveness for each borrower. Warren is a member of a number of Senate finance committees focused on consumer protection and federal regulatory oversight.

“With a stroke of his pen, President #CancelStudentDebt and relief for 40 million Americans can continue our economic recovery, narrowing the racial wealth gap.” , Warren He said in a tweet Tuesday.

Warren is not the only prominent Democratic senator who wants the Biden administration to take action on student loan debt. Senate Majority Leader Chuck Schumer of New York State has called on the president to issue student loan forgiveness dozens of times on Twitter in the past few months.

A number of House Democrats have also urged President Biden to waive student loans through an executive order on Twitter last week, including lawmakers. Ilhan Omar, D Mn; Pramila Jayapal, D-wash. And Ayanna Presley, de mas.

“It’s time to cancel at least $50,000 of student loan debt for every borrower.”

– Recome back. Pramila Jayapal, D. Wash.

Democrats argue that the president must rely on his executive power to fulfill his campaign promise to waive federal student loan debt.

Biden himself has questioned his ability to cancel student debt using his presidential powers, and the White House recently indicated that he was waiting for Congress to enact student loan forgiveness legislation. House Speaker Nancy Pelosi, of California, agrees — she’s previously said canceling student debt “must be an act of Congress.”

Keep reading to learn more about what the Biden administration is doing to provide student loan forgiveness, as well as alternative college debt repayment options such as refinancing. You can compare free student loan refinancing offers on Credible without affecting your credit score.

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Does Biden forgive student loans?

As a presidential candidate, Biden campaigned to waive a minimum of $10,000 in federal student loan debt to each borrower. But a year into his presidency, he has yet to deliver on that promise.

One of the problems facing the Biden administration is how best to enact student loan forgiveness legislation. While progressives continue to urge the president to cancel student debt using an executive measure, Biden himself noted in a February 2021 Town Hall He does not believe he has the legal authority to push this case forward.

The Higher Education Act of 1965 gives the Secretary of Education the authority to “enforce, pay, settle, waive or renounce any right” to collect federal student loans, but legal experts are divided over whether that includes student loan forgiveness broadly.

Since Biden took office, the Department of Education has ceded $11.5 billion in student loan debt through existing federal student loan forgiveness programs, such as the Public Service Loan Forgiveness Program (PSLF), Borrower’s Defense and Full and Permanent Discharge (TPD) . In addition, the Biden administration recently extended the moratorium on federal student loan repayments until May 1, 2022.

However, millions of Americans who do not qualify for forgiveness still owe $1.75 trillion in student loan debt, according to the Federal Reserve. It is unclear whether President Biden will forgive student loans, though Education Secretary Miguel Cardona said the Department of Education “will continue talks about … broad loan forgiveness.”

With no certainty about widespread student loan cancellation, some borrowers may do so Research alternative debt repayment options such as student loan refinancing. Find out if this strategy is right for your financial situation with the Credible Student Loan Refinance Calculator.

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How do you decide if you should refinance your student debt

Student loan refinancing is when you take out a new student loan to pay off college debt on better terms, such as a lower interest rate. Refinancing student loans can help you reduce your monthly payments, pay off your debts faster and save money on interest over the life of the loan.

However, student loan refinancing is not right for everyone. Here are some things to consider if you are considering refinancing:

  • Refinancing federal student loans into a private loan makes you ineligible for some federal protections. This includes income-driven repayment plans, emergency COVID-19 relief and student loan forgiveness programs such as the PSLF.
  • Private student loans do not qualify for federal government protection, so borrowers don’t have much to risk by refinancing this type of student loan.
  • Student loan refinancing rates are currently near historic lows, according to data from Credible, which means borrowers have the ability to lock in a lower interest rate on college debt.
  • Private student loan refinancing rates are determined by the borrower’s creditworthiness, such as credit score and debt-to-income ratio. Borrowers with fair or bad credit may consider refinancing student loans with a cosigner to secure better terms.
  • Private student loan lenders do not charge a refinancing fee, which means your interest rate is the only finance fee included in the loan.

Browse current student loan refinancing rates from private lenders in the table below, and visit Credible for a free estimated rate without affecting your credit score. This way, you can decide whether or not this debt repayment strategy is right for you.

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Have a question related to financing, but don’t know who to ask? Send an email to our certified money expert And your question may be answered by Credible in the Money Expert column.

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