Joe Biden to Cancel $6.2 Billion of Student Loans
The U.S. Department of Education has identified 100,000 student loan borrowers who are now eligible for student loan cancellation due to the changes the Biden administration made to the Public Service Loan Forgiveness program in October.
President Joe Biden will cancel $6.2 billion in student loans through changes to student loan forgiveness. Ultimately, the Education Department says that 550,000 student loan borrowers will get student loan forgiveness sooner due to these changes.
These major changes include:
- Count prior student loan payments toward student loan forgiveness;
- Count prior student loan payments made for FFELP Loans;
- Get credit for student loan forgiveness if you used the wrong student loan repayment plan;
- Count prior student loan payments that were late or were partial payments;
- Student loan payments made before student loan consolidation also count; and
- Members of the military can count prior student loan payments while on active duty.
How to get this student loan forgiveness?
After meeting eligibility requirements, the remaining balance of your federal student loans will be forgiven. To count prior student loan payments that were deemed ineligible, you can complete a limited waiver for student loan forgiveness, which is available through the U.S. Department of Education.
This limited waiver is available through October 31, 2022. This limited waiver will allow you to count previous payments to help you meet the 120 monthly payments requirement. Make sure to submit an Employer Certification to the Education Department annually and each time you change employers.
So, are student loans good or bad? With over 1.8 trillion in debt, students might question the significance of an education loan. But this number also proves that more and more students are opting for student loans. The trick is to know which loans to choose and avoid. There are a few things that you need to keep in mind before choosing the best loan offer for yourself.
A few things you can keep in mind while looking for an education loan are:
- Make sure your loan amount covers all your expenses.
- After you’ve assessed the loan amount, you should look at the top three lenders with the least rate of interest.
- Put in your loan applications with the banks the week you start applying to the universities abroad because the banks will have higher processing times in the peak study abroad season: April to July.
Let FundRight walk with you hand-in-hand throughout the process and help ease your stress. Sign-up today and unlock the best offers!