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White House: Student Loan Forgiveness?

The White House has denied reports that President Joe Biden is seeking to impose $10. 000 student loan forgiveness, with alibi if a decision has not been made.

Here's what you need to know—and what that means for your student loans.

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Student Loans

Is your student loan about to be canceled? It's been like that student loan issue has been pleading for months. "No decision has been made yet," White House spokesman Vedant Patel told Reuters on Friday. The White House refuted a report from the Washington Post claiming:

• Biden wants to cancel $10. 000 student loans per student loan borrower; and

• Student loan forgiveness will be available for individual student loan borrowers earning up to $150 annual income. 000, or marriage partners who file together and earn up to $300. 000.

Earlier this month, the Biden administration imposed this same income limit in order to meet the conditions for student loan forgiveness. Specifically, this potential income limit is $50. 000 is more than the entry cap on the Covid-19 stimulus check, which is pegged at $75. 000 for people. 

Biden could cancel student loans tomorrow

Will Biden cancel student loan debt tomorrow? Biden delivers a graduation speech at the University of Delaware, his alma mater, tomorrow. While the White House said Biden had not yet decided on a large-scale student loan pardon, the president could use tomorrow's graduation as an opportunity to announce his intentions for student loan waivers. Whether Biden delivers a full-scale plan or shares an updated agenda on the decision, the president can refer to the next steps for student loan lenders. On April 28, Biden said he would decide whether to continue with large-scale student loan cancellations in a few weeks. However, that was more than 4 weeks later. If the Bidens announced an update on student loan forgiveness, it would be the second major learning policy plan in the past week. For example, the U.S. Department of Learning announced a major overhaul of its student loan service.

Student loan cancellation: next steps

The Biden administration reiterates that student loan borrowers are not required to repay a dollar of their federal student loans since Biden became president. Biden has now canceled $18.5 billion in student loans to 750,000 student loan borrowers. The president said he had no plans to forgive $50. 000 of student loan debt, which progressive Democrats in Congress have been fighting for. If Biden cancels $50. 000 of student loan debt, it will eliminate federal student loan debt for 36 million student loan borrowers. However, since the 2020 presidential election, Biden has always focused on pardoning his $10 student loan. 000. A group of senators, led by Senator Elizabeth Warren (D-MA), are still lobbying Biden to think about reducing student debt by $50. 000. They've asked the president to delay a decision on large-scale student loan forgiveness, which could be one of Biden's alibis for not announcing plans to cancel student loan debt at graduation tomorrow. The next major deadline for student loan lenders is the end of the temporary student loan waivers on August 31, 2022. Despite Biden's announcement of student loan forgiveness, pay close attention to the end of the student loan repayment window. Ideally, you should have a game plan in place before student loan payments are restarted. Consider these popular options for student loan payments:

Student loan refinancing (lower interest rates + lower payments); Income sourced payments (lower payouts); and  Student loan forgiveness (federal student loans).

(by Zack Friedman; Forbes)

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