How Biden's New Student Loan Relief Means That Your Student Loans

President Joe Biden has extended student loans relief for 90 days up to May 1, 2022. Here’s everything you need to know about Biden’s student education loan extension.

Student Loans

When it comes to student loans, you can’t say no. Biden made an unlikely announcement today, extending student loan relief for three additional months to 41 million borrowers. Temporary student loan forgiveness was set to expire on January 31, 2022. The third extension of his executive action, which was assured by the Biden administration to student loan borrowers, means that federal student loan payments will not be resumed until May 1, 20,22. This temporary student loan waiver lowers the interest rate on federal student loans to 0.0% and prevents student loan defaults from being collected. Federal student loan borrowers have enjoyed this relief since March 2020, when Congress passed The Cares Act. After the Covid-19 pandemic in 2017, President Donald Trump granted student loan relief twice as well as Biden.

Biden released a statement saying that “[T]oday, my Administration will extend the pause in federal student loan repayments until May 1, 2022 — while we manage the continuing pandemic and strengthen our economic recovery.” “In the meantime, we will continue to work closely with borrowers to ensure they get the support and assistance they need to make the transition to repayment and improve economic stability in their homes and the nation.

Biden’s thoughts on student loan relief

Months ago, the Biden administration stated that this was meant to be the final extension for temporary student loan relief. They assured student loan borrowers that federal student loan borrowers would start student loan repayments on February 1, 2022. This was also communicated to them in writing. Biden changed his mind.

There are many reasons for this, but here are three reasons you must know. First, Biden was repeatedly pressured by progressive members of Congress, including Senator Majority Leader Chuck Schumer (D.NY) and Sen. Elizabeth Warren(D.MA), for months to extend student loan relief. Some advocates called on Biden for temporary student loan relief, while others demanded that he extend the relief for longer periods of time until the end of the Covid-19 epidemic. The Omicron variant was growing in severity and the ongoing threat from the Covid-19 pandemic led to the Biden administration offering financial assistance to borrowers who might be in financial trouble. Biden could have considered the possible political fallout from the midterm elections in 2022. Biden could have been worried about alienating Democratic voters by not extending student loan relief.

Are student loans canceled?

Can your student loans be canceled? Some student loan borrowers are wondering if the 90-day extension for student loan relief could be a sign of widespread student loan cancellation. (How to apply for automatic student loan forgiveness. Biden didn’t mention student loan cancellations or broad-scale student loan forgiveness in today’s statement. 5 ways Biden could cancel even more student loans.

However, he advised student loan borrowers that they should consider public service loan forgiveness. Since his January election, Biden had canceled $12.7 million student loans. He supports large-scale student loan cancellations up to $10,000 for borrowers of student loans but wants Congress not to delay. (Here are the steps to obtain student loan forgiveness during Biden’s administration. Biden claimed he would cancel student loans for millions of borrowers but Congress hasn’t passed any legislation. (It is not likely that Biden will cancel student loans before relief for student loan borrowers ends.

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Next steps: Student loans

Students loan borrowers can now breathe a temporary sigh of relief. Borrowers won’t be required to make federal student loans payments until May 1, 20,22. To facilitate the transition, the U.S. Department of Education is likely to contact borrowers in writing prior to the resumption of student loan payments. You have many options.

  • Make no federal student loans payments to receive more student loan relief
  • Make one or more student loan payments in order to repay student loans quicker.
  • You might consider an income-driven payment plan or public service loan forgiveness.
  • Refinance student loans to receive a lower interest, a lower monthly repayment, or both.

So that student loan payments can start again, it is important to be familiar with all of your options. Here are some ways you can save money and pay your student loans off faster.

  • Student loan refinancing (lower monthly payment + higher interest rate)
  • Income-driven repayment programs (lower payments, but the same interest rate)
  • Public Service Loan Forgiveness (Student Loan Forgiveness for Public Employees)
Alex Gold

Alex Gold

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SLFA is a private company and does not claim to be affiliated with any Federal, State, or Local Government agencies. People with student loan debt have the legal right to use an attorney or process federal student loan documentation on their own behalf without paid assistance. Our mission is to provide people with the credit repair, knowledge, information, and document preparation service they need to deal with all the financial decisions to find what they need and return to life effortlessly.

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