What’s Next For Student Loan Cancellation

Here’s what next for student loan cancellation.

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

Student Loans

From rallies on Capitol Hill to cancel student loan debt to hearings on student loan forgiveness, there’s been no shortage of focus on student loans. Congress and the Biden administration will have significant impact on the next steps for student loan forgiveness. What’s next for your student loans? Here are 4 things to know:

1. There will be more student loan cancellation

President Joe Biden has cancelled more student loans than any president in history. Since becoming president, Biden has now cancelled nearly $10 billion of student loans for hundreds of thousands of student loan borrowers. This is in addition to the nearly $60 billion that Biden will have cancelled by early next year through temporary student loan forbearance. The U.S. Department of Education estimates that temporary student loan forbearance collectively has saved student loan borrowers $5 billion each month during the Covid-19 pandemic. Similarly, President Donald Trump cancelled nearly $20 billion of student loans by extending student loan relief from the Cares Act, the $2.2 trillion stimulus package that Congress passed in March 2020. The good news for student loan borrowers is that Biden will continue to cancel student loans during the coming months and years. That student loan cancellation is likely to be based on existing law and implemented through the U.S. Department of Education, which U.S. Secretary of Education Miguel Cardona leads. (Here’s how to get student loan forgiveness). Student loan forgiveness can take many forms, but Biden has focused student loan forgiveness on the borrower defense to repayment rule as well as student loan cancellation for disabled student loan borrowers, as two recent examples. (Find out how to apply for nearly $10 billion of student loan forgiveness). Biden has cancelled $1.5 billion of student loans this way, and you can learn how to apply now since student loan cancellation is still available).


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