Current student loan news for the week of May 9, 2022
Recent reports indicate that President Biden is considering student loan forgiveness for borrowers who have federal student loan debt. If he enacts student loan relief, federal borrowers could see relief as early as Aug. 31. Here’s what to know about this week’s student loan news.
1 current student loan trend for the week of May 9, 2022
1. Federal student loan forgiveness may still be on the table
In late April, Biden signaled to members of the Congressional Hispanic Caucus that he was considering mass cancellation of federal student loans through an executive order. While details are still being finalized, the move would be significant; Biden campaigned on the idea of canceling $10,000 in student loan debt per borrower, but so far his administration has avoided widespread cancellation.
How it affects student loans
There are no plans yet for what Biden’s student loan forgiveness would look like. The Washington Post reported that the administration is considering setting income limits for those eligible for the rebate, with potential annual income caps of about $150,000 per individual and about $300,000 per couple filing jointly. .
From now on, the rebate would also be limited to federal student loans. Borrowers with private student loans, including those who refinanced their federal student loans with a private lender, would not be eligible for this discount.
The timing of student loan cancellation is also unclear, although White House press secretary Jen Psaki told a press briefing that a decision would be made before the end. of the federal student loan forbearance period. This period is currently due to end on August 31, 2022, although it may be extended further.
Take away key
Biden may soon enact mass student loan forgiveness for federal borrowers, though there may be limits.
Here’s how you can prepare
Whether you’re new to student loans or in the process of repaying, it’s wise to stay informed about how your student loan rates might change. In 2022, more opportunities for cheaper loans or loan forgiveness may open up; keep an eye on the Bankrate student loan news hub for the latest trends.