If Biden Doesn’t Cancel Your Student Loans, Do These 3 Things

If you don’t get your student loans cancelled from President Joe Biden, do these 3 things instead.

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

Student Loans

Biden has now forgiven nearly $10 billion of student loans since becoming president, which has helped cancel student loans for hundreds of thousands of student loan borrowers. If your student loans have been cancelled, you’re among a cadre of student loan borrowers who has escaped the shackles of student loan debt. (Find out here if you qualify for nearly $10 billion of student loan cancellation). For most student loan borrowers, however, wide-scale student loan forgiveness likely won’t become reality. If Biden or Congress doesn’t cancel your student loan debt, the good news is you have other options. Do one of these 3 things instead:

1. Get student loan forbearance or student loan deferment

Student loan relief from the Covid-19 pandemic will end January 31, 2022. The Biden administration previously extended this student loan relief from the Cares Act twice for one year. As a result, starting February 1, 2022, temporary student loan forbearance will end and regular student loan payments will resume. That said, if you have an economic hardship, you can still get forbearance or deferment for your federal student loans. It’s important, however, to understand the difference between student loan forbearance and student loan deferment. While both options enable you to postpone your student loan payments temporarily, they can impact your financial situation differently. If you are in student loan deferment, no interest will accrue to your student loan balance. If you are in forbearance, interest will accrue to your student loan balance. You can apply for student loan forbearance and student loan deferment through your student loan servicer.


https://www.forbes.com/sites/zackfriedman/2021/09/16/if-biden-student-loan-forgiveness-doesnt-happen-do-these-3-things/

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