5 Ways For Biden To Forgive More Student Loans

President Joe Biden (Photo by Spencer Platt/Getty Images)
Getty Images

There are at least 5 ways that President Joe Biden can forgive more student loans.

Here’s what you need to know — and what it means for your student loans.
Student Loans

It’s no secret that with the expiration of temporary student loan relief, student loan borrowers are preparing to restart federal student loan payments on February 1, 2022. While many student loan borrowers will refinance student loans, other borrowers will be wondering how to get student loan forgiveness. Biden has cancelled $11.5 billion of student loans since becoming president. The U.S. Department of Education announced that $2 billion of student loans will be cancelled within weeks. Even with this announcement, and the easing of rules for student loan forgiveness, here are 5 ways that Biden can forgive more student loans.
1. Cancel student loans for most student loan borrowers

Wide-scale student loan cancellation is the most obvious way Biden can cancel more student loans. For example, Biden could cancel student loans of up to $10,000 for student loan borrowers. (Here’s who qualifies for student loan forgiveness right now). It’s unlikely that Biden will consider student loan cancellation up to $50,000, and there is serious doubt whether Biden has the legal authority to act unilaterally without further authorization from Congress. If Biden proceeds to cancel student debt, the question then becomes who would qualify for student loan forgiveness. Senate Majority Leader Chuck Schumer (D-MY) and Sen. Elizabeth Warren (D-MA) say that only student loan borrowers who earn less than $125,000 would be eligible for student loan cancellation. However, if Biden proceeds with wide-scale student loan forgiveness, expect that income threshold to be less, with a focus on lower income borrowers. (These borrowers don’t qualify for limited student loan forgiveness).
2. Student loan forgiveness after 10 years

Biden could cancel student loans automatically after 10 years of student loan payments for student loan borrowers. (How to apply for student loan forgiveness during the Biden administration). Currently, to get student loan forgiveness, public servants must make 120 monthly payments and meet a handful of requirements. While this could take 10 years, some student loan borrowers spend more than 10 years trying to get student loan forgiveness. If Congress’ intent was to reward public servants like police officers, teachers, military servicemembers, firefighters and first responders who serve 10 years, then Biden could work with Congress to make guaranteed student loan forgiveness after 10 years a reality.
3. Make student loan cancellation automatic

Student loan borrowers want to know how to qualify for automatic student loan cancellation. While borrowers must apply for most student loan forgiveness, there are some circumstances in which student loan cancellation is automatic. With most student loan forgiveness, there are applications, paperwork and in some cases, long waiting periods. This creates uncertainty for student loan borrowers and more work for public servants in Washington who implement student loan cancellation. (Here’s who qualifies for student loan forgiveness right now). One solution is to make student loan cancellation automatic for certain circumstances. For example, student loan borrowers with a total and permanent disability should be able to get student loan cancellation through data matching with the U.S. Social Security Administration or U.S. Department of Veterans Affairs. Similarly, while the Biden administration has relaxed the rules for public loan forgiveness to allow more student loans to get their student loans cancelled, the changes are only temporary. (How to apply for limited student loan forgiveness). A more seamless process for student loan forgiveness can help borrowers and save time on processing extra paperwork.

https://www.deviantart.com/rfdtvnfr/journal/NFR-2021-Live-Stream-Reddit-Free-Online-tv-899607931
https://www.deviantart.com/rfdtvnfr/journal/National-Finals-Rodeo-2021-Live-StreamS-ON-Reddit-899608046
https://www.deviantart.com/rfdtvnfr/journal/NFR-2021-Las-Vegas-Live-Stream-Reddit-FrEe-HD-TV-899608102
https://www.deviantart.com/rfdtvnfr/journal/NFR-Las-Vegas-2021-Live-Streaming-ON-Reddit-FrEe-899608162
https://www.deviantart.com/rfdtvnfr/journal/Wrangler-National-Finals-Rodeo-2021-Live-Streaming-899608257
https://www.deviantart.com/rfdtvnfr/journal/National-Finals-Rodeo-2021-Las-Vegas-Live-Stream-899608335
https://www.deviantart.com/rfdtvnfr/journal/NFR-2021-Race-Live-Stream-On-Reddit-Free-Online-899608439
https://www.deviantart.com/rfdtvnfr/journal/NFR-2021-Las-Vegas-Rodeo-Live-StreamS-Reddit-Free-899608517

https://www.deviantart.com/rfdtvnfr/journal/Watch-NFR-Live-Stream-WNFR-2021-Official-Broadcast-899606370
https://www.deviantart.com/rfdtvnfr/journal/Streamofficial-National-Finals-Rodeo-2021-899606422
https://www.deviantart.com/rfdtvnfr/journal/Streamofficial-National-Finals-Rodeo-2021-LIVE-899606504
https://www.deviantart.com/rfdtvnfr/journal/NFR-National-Finals-Rodeo-LIVE-STREAMREDDIT-899606546
https://www.deviantart.com/rfdtvnfr/journal/NFRofficial-National-Finals-Rodeo-2021-LIVE-HD-899606594
https://www.deviantart.com/rfdtvnfr/journal/2021-NFR-Live-Stream-Reddit-on-Twitter-899606712
https://www.deviantart.com/rfdtvnfr/journal/2021-NFR-Live-Stream-Reddit-on-nfr-streaming-pass-899606779
https://www.deviantart.com/rfdtvnfr/journal/2021-NFR-Live-Stream-Reddit-on-rfd-tv-nfr-899606889
https://www.deviantart.com/rfdtvnfr/journal/2021-NFR-Live-Stream-Reddit-on-cowboy-channel-899606958
https://www.deviantart.com/rfdtvnfr/journal/2021-NFR-Live-Stream-Reddit-on-nfr-on-youtube-tv-899607049
https://www.deviantart.com/rfdtvnfr/journal/NFR-Live-Stream-Free-on-national-finals-rodeo-2021-899607168
https://www.deviantart.com/rfdtvnfr/journal/2021-NFR-Live-Stream-Reddit-on-pro-rodeo-tv-899607190
https://www.deviantart.com/rfdtvnfr/journal/NFR-Live-Reddit-on-pro-rodeo-live-streaming-free-899607250
https://www.deviantart.com/rfdtvnfr/journal/HD-NFR-Live-Stream-Reddit-on-nfr-live-stream-2021-899607311
https://www.deviantart.com/rfdtvnfr/journal/National-Finals-Rodeo-2021-lIvE-sTrEaMrEDDiT-899607343
https://www.deviantart.com/rfdtvnfr/journal/Streamofficial-NFR-2021-LIVE-STREAMREDDIT-899607384
https://www.deviantart.com/rfdtvnfr/journal/Watch-NFR-Live-Stream-2021-Free-2-December-2021-899607425
https://www.deviantart.com/rfdtvnfr/journal/NFR-Live-Stream-2021-Free-1-December-2021-899607448
https://www.deviantart.com/rfdtvnfr/journal/National-Finals-Rodeo-Live-Stream-Free-2-Dec2021-899607484
https://www.deviantart.com/rfdtvnfr/journal/National-Finals-Rodeo-2021-Live-Stream-Free-2Dec-899607566

https://www.deviantart.com/mosihaf222/journal/NFR-National-Finals-Rodeo-Live-Stream-Online-2021-899589539
https://www.deviantart.com/mosihaf222/journal/How-To-Watch-The-National-Finals-Rodeo-NFR-2021-899589785
https://www.deviantart.com/mosihaf222/journal/Watch-NFR-Live-Stream-2021-Las-Vegas-Rodeo-Online-899589839
https://www.deviantart.com/mosihaf222/journal/NFR-2021-Live-Stream-Wrangler-National-Final-Rodeo-899589934
https://www.deviantart.com/mosihaf222/journal/NFR-National-Finals-Rodeo-2021-television-coverage-899589981
https://www.deviantart.com/mosihaf222/journal/NFR-december-2021-Live-Stream-Online-12-2-2021-899590021
https://www.deviantart.com/mosihaf222/journal/Wrangler-National-Finals-Rodeo-2021-Live-Stream-TV-899590076
https://www.deviantart.com/mosihaf222/journal/NFR-2021-times-Watch-Free-Online-4k-hd-TV-At-home-899590092
https://www.deviantart.com/mosihaf222/journal/NFR-rodeo-las-vegas-2021-live-Stream-Free-Reddit-899590143
https://www.deviantart.com/mosihaf222/journal/Cra-ckstreams-NFR-National-Finals-Rodeo-Free-TV-899590204
https://www.deviantart.com/mosihaf222/journal/Cra-ckstreams-NFR-National-Finals-Rodeo-Streams-899590272
https://www.deviantart.com/mosihaf222/journal/Crackstreams-National-Finals-Rodeo-Streams-Reddit-899590325

https://www.deviantart.com/mosihaf222/journal/National-Finals-Rodeo-FREE-Live-Stream-Reddit-899591008

https://www.deviantart.com/mosihaf222/journal/NFR-National-Finals-Rodeo-FREE-Live-Stream-Reddit-899591058

4. Lower monthly student loan payments for these borrowers

As a presidential candidate, Biden proposed lowering the percentage that a borrower pays each month for student loans on an income-driven repayment plan. Currently, income-driven repayment plans such as IBR, PAYE, REPAYE and ICR require that you pay 10-20% of your monthly discretionary income toward your federal student loans. Biden proposed capping the percentage at 5%. With a lower income threshold, more borrowers could avoid student loan delinquency and student loan default. As a presidential candidate, President Donald Trump proposed forgiving student loans for undergraduates after 15 years through an income-driven repayment plan (rather than 20 years), which could help student loan borrowers get student loan forgiveness sooner.
5. Give partial student loan forgiveness

Most student loan forgiveness is total student loan cancellation. You either qualify or you don’t. Think income-driven repayment plans or public service loan forgiveness. That said, it’s possible to get partial student loan forgiveness through borrower defense to repayment, for example. Biden could help more student loan borrowers get student loan forgiveness if partial student loan forgiveness is expanded. This way, student loan borrowers could either qualify for student loan cancellation sooner or at least get some student loan forgiveness. For example, Biden proposed shortening the period of public service loan forgiveness to five years and giving $10,000 a year of student loan forgiveness. This is different than the current, all-or-none current option of total student loan forgiveness or no student loan forgiveness.

As the Biden administration considers next steps on student loan cancellation, expect more borrowers to qualify for student loan forgiveness. With a preference for targeted student loan cancellation over wide-scale student loan cancellation, these policy recommendations may help shape the future of student loan relief. As temporary student loan forbearance expires on January 31, 2022, make sure you fully understand all your options. Here are some popular ways to pay off student loans:

Student loan refinancing (lower interest rate + lower monthly payment)
Income-driven repayment plans (lower payment, but same interest rate)
Public service loan forgiveness (student loan forgiveness for public servants)

Student Loans: Related Reading
How to qualify for automatic student loan forgiveness
How to apply for limited student loan forgiveness
Education Department will cancel $2 billion of student loans
Here’s who qualifies for student loan forgiveness right now

Add a Comment

Your email address will not be published.