What You Need To Know About President Biden’s Student Loan Forgiveness Program
When President Joe Biden took office, one of his first actions was to sign an executive order that would provide some relief to student loan borrowers. The order, which went into effect on February 15, 2021, pauses all federal student loan payments and interest accrual for at least 60 days. In addition, the order reinstates the Public Service Loan Forgiveness program, which had been set to expire on December 31, 2020.
The order also gives borrowers the option to temporarily consolidate their loans into a single loan with a lower interest rate. This could be helpful for borrowers who have multiple federal loans with different interest rates. By consolidating into a single loan, they would only have to make one monthly payment.
The executive order is only temporary, however, and it’s unclear what will happen after the 60-day period is up. President Biden has said that he’s working on a plan to provide more long-term relief to student loan borrowers, but it’s still in the early stages. In the meantime, here’s what we know about the president’s student loan forgiveness plan.
The plan is still in the early stages, but President Biden has said that he wants to provide relief to student loan borrowers in a few different ways. First, he wants to make it easier for borrowers to get their loans forgiven through the Public Service Loan Forgiveness program. Second, he wants to expand eligibility for the program to include more borrowers. And third, he wants to create a new program that would forgive up to $10,000 of student loan debt for borrowers who make regular payments for at least 20 years.
The details of the plan are still being worked out, and it’s unclear when or if it will be implemented. But if you’re a student loan borrower, it’s worth keeping an eye on the situation. In the meantime, you can take advantage of the relief that’s available now by pausing your student loan payments and consolidating your loans.