Biden Hasn’t Cancelled Student Loans, But Don’t Pay For Student Loan Forgiveness

President Joe Biden hasn’t cancelled your student loans, but don’t pay for student loan forgiveness.

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

Student Loans

If you follow the latest headlines on student loans, you know that Biden hasn’t enacted wide-scale student loan cancellation. Despite pressure from Sen. Elizabeth Warren (D-MA) and Senate Majority Leader Chuck Schumer (D-NY) to cancel up to $50,000 of student loans, Biden has opted to focus on targeted student loan cancellation. Since becoming president, Biden has cancelled more student loans than any president. This includes $10 billion of student loan cancellation, including $1.5 billion of student loan cancelled this way and $5.8 billion of student loans cancelled for student loan borrowers with a total and permanent disability. (Find out here how to apply for student loan forgiveness). Without wide-scale student loan forgiveness, you may be asking: “Should you stop paying your student loans?” If you didn’t get student loan forgiveness, you may be tempted to pay a company to help you with student loan forgiveness. Why? The lack of wide-scale student loan cancellation has resulted in some student loan borrowers becoming victims of potential scams involving student loans. Here’s what you need to know so you don’t lose money:

1. There’s no Biden student loan forgiveness

If someone promises you “Biden student loan forgiveness,” it’s a scam. The term “Biden student loan forgiveness” refers to student loan forgiveness through the U.S. Department of Education for your federal student loans. Biden student loan forgiveness also refers to student loan cancellation enacted by Biden under existing law. Therefore, “Biden student loan forgiveness” refers to federal student loan forgiveness through the federal government. No company can forgive your student loans. Don’t believe any company that promises student loan forgiveness. (However, here’s how to get student loan forgiveness). A typical scam is for a company — usually through an email or ad — that promises to cancel your student loans through the Biden student loan forgiveness program. Here’s the thing: there is no Biden student loan forgiveness through a company. This scam sounds like the Public Service Loan Forgiveness program, which Congress created and President George W. Bush, not Biden, signed into law in 2007. However, only the U.S. Department of Education can cancel your student loans through the Public Service Loan Forgiveness program, not a private company. (Biden student loan forgiveness means 3 things for your student loans).


https://www.forbes.com/sites/zackfriedman/2021/09/19/biden-hasnt-cancelled-student-loans-but-dont-fall-for-this-student-loan-forgiveness-scam/

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