Schumer reiterates call for Biden to write off $ 50,000 in student loan debt per borrower “with the stroke of a pen”
On Thursday, Senate Majority Leader Chuck Schumer (DN.Y.) again called on President Joe Biden to write off up to $ 50,000 in federal student loan debt per borrower “with a simple movement of pen”.
While opening speech of a virtual projection of a documentary series on the student debt crisis, “Scared to Debt,” Schumer said that college debt makes it harder for young Americans to reach financial milestones like become owner, buy a car or even start a family.
“For generations higher education has been a ladder to the middle class … but today student debt is an anchor that weighs too much on many.”
“Student debt makes it harder to achieve the American dream – the sacred promise that if you work hard and play by the rules, one day you will be successful here in America,” Schumer said.
Schumer belongs to a group of progressive democrats, as Senator Elizabeth Warren (D-Mass.), who pressured the White House to enact student loan cancellation measures by decree in accordance with the Law on Higher Education. During his presidential campaign, then-candidate Joe Biden supported forgiveness of $ 10,000 in federal loans per borrower. However, his administration has not yet enacted such legislation.
Keep reading to learn more about the likelihood of student loan cancellation, as well as what you can do with your private student loans that are not forgiven. You can compare your private student debt management options, such as refinancing, on Credible’s online loan marketplace.
Will Biden cancel student loan debt?
Education Secretary Miguel Cardona said in a recent town hall that the Biden administration is still discussing the idea of a “large” student loan forgiveness. Corn Speaker of the House Nancy Pelosi recently declared that President Biden does not have the legal authority to cancel student loans and that the cancellation of student loans “must be an act of Congress.”
Even though Democrats and Republicans were able to unite to pass a law on the forgiveness of student loans, not all borrowers and all types of loans would meet the eligibility criteria. For example, high-income borrowers may not qualify for student debt relief, and federal loan cancellation laws would not apply to students. private student loans.
About 1 in 8 borrowers have private student loan debt, according to EducationData.org, meaning millions of graduates would still be in college debt even if the Biden administration were able to pass student loan forgiveness legislation.
Consider refinancing your private student loans
Private student loan debt will be an ongoing burden for many borrowers, even as Biden cancels student loan debt. However, it is possible to make your more manageable private student loans by refinancing.
Student loan rates are close to historic lows, according to credible data, which means that it may be possible to lock in a lower interest rate on your college debt. Refinancing your private student loan debt at a lower rate can help you lower your monthly student loan payments, pay off debt faster, and save money on interest over the life of your loans.
According to data from Credible, borrowers who refinanced to a longer loan term on Credible were able to lower their monthly payments over $ 250. And those who refinanced in the shorter term have saved almost $ 17,000 in interest over time and paid their debts 41 months faster on average.
To view student loan refinancing rates from actual lenders, see the table below. You can also visit Credible for see your estimated interest rate without affecting your credit score.
How to know if refinancing a student loan is right for you
Refinancing your student loans at a lower rate can save you money on interest now and over time, but it’s not good for everyone. For example, refinance your federal student loans makes you ineligible for federal benefits such as income-tested reimbursement plans, COVID-19 administrative tolerance and student loan exemption programs like the PSLF.
If you have private student debt, you don’t risk losing access to these programs because you never qualified. Additionally, student lenders are not allowed to charge a refinancing fee, so you have nothing to lose by refinancing at a lower rate and on more favorable terms.
To learn more about student loan refinancing and see if this option is right for you, get in touch with a competent loan officer at Crédible.
Have a finance-related question, but you don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.