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$10,000 Biden Federal Loan Forgiveness Update – Extensions, Forgiveness & Refi’ing Student loans

October 29, 2022 admin Comments Off
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In this video, “$10,000 Biden Federal Loan Forgiveness Update – Extensions, Forgiveness & Refi’ing Student loans” We talk about the newest news that has come out about the Biden administration With the moratorium on repayment, interest and collections for federal student loans extended through Aug. 31, student loan borrowers might be wondering whether they can expect another extension beyond that date.

We believe the federal student loan forbearance will continue past August 31st, 2022 into likely Nov or Dec with the $10,000 student loan forgiveness being the final end game to the whole $50,000 or $10,000 federal student loan forgiveness.

After all, President Joe Biden has extended the student loan payment moratorium four times since he took office, with the last one described as the “final” extension when it was announced last January.

There’s also the matter of loan forgiveness for all student borrowers. Both Democrats and President Biden have floated the idea of at least $10,000 in blanket forgiveness for student loan borrowers, but that hasn’t yet gained traction in Congress — Biden’s preference — or as an executive order. While President Biden supports canceling $10,000 in student debt, he has also questioned his legal authority to do so through an executive order. Last year, Biden requested a memo from the Department of Education to determine his authority, but at this time, it’s not clear if the memo process is completed or what the findings might be.

On April 6, 2021, the U.S. Department of Education (ED) extended COVID-19 emergency relief for student loans through August 31, 2022. The emergency relief includes the following measures for eligible loans:

a suspension of loan payments
a 0% interest rate
stopped collections on defaulted loans
Have questions? Find out what loans qualify and get additional information about the COVID-19 emergency relief for student loans.

Psaki offered $125,000 as a possible threshold in a briefing for reporters traveling with the president to a weapons plant in Alabama.

The president has been prodded by progressives including Democratic Senator Elizabeth Warren to forgive at least $50,000 per borrower, but Biden has said he won’t relieve that much debt by executive action. He proposed eliminating $10,000 per borrower during his presidential campaign.

Biden’s latest focus is improving the Public Service Loan Forgiveness (PSLF) program, which helps student loan borrowers such as first responders, teachers, service members in the military, nurses, doctors and other public servants get federal student loan cancellation. As part of the College Cost Reduction and Access Act, Congress created the federal program on a bipartisan basis in 2007 during the President George W. Bush administration. As of April 30, 2021, the U.S. Department of Education has cancelled $452.7 million of student loan debt for 5,467 student loan borrowers through the Public Service Loan Forgiveness program.

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