President Joe Biden has confirmed he will make a decision on student debt by the end of August.
When speaking to reporters on Air Force One last week, Biden was asked about the status of his student loan decision.
“What about the student loan decision, sir?” asked a reporter. “People said you were going to make that decision by the end of August. Where are you at this point?”
Biden simply replied, “By the end of August.”
It is unclear which decision the president was referring to. Earlier comments from the White House and the Department of Education opened up the possibility of widespread student debt forgiveness and/or an extension of the current student loan payment pause.
Federal student loans are currently on COVID-related forbearance and payments have been suspended until August 31. During this period, borrowers are not required to make payments on their loans and interest rates have been set at 0%. The Ministry of Education also halted collections on delinquent loans during this period.
If you have private student loans that aren’t eligible for forgiveness, you may be able to lower your monthly payment through refinancing. Visit Credible to find your personalized interest rate without affecting your credit score.
MAJORITY OF AMERICANS SUPPORT FORGIVING $10,000 OF STUDENT DEBT: POLL
Biden considers canceling student loan debt
Biden has previously said he is considering canceling some student debt, but has not yet given an official decision on when or how much. He, however, said he would not cancel the $50,000 student loan debt some Democrats are asking for.
“I’m looking at facing some debt reduction,” Biden told reporters at the White House in May. “I am not considering a $50,000 debt relief. I am in the process of looking closely at whether or not there will be additional debt relief and will have a response on that within the next few weeks. “
Former White House press secretary Jen Psaki also previously said that Biden “will make a decision on any student debt cancellation before this pause on student loans concludes.”
But during an interview on MSNBC in May, Education Secretary Miguel Cardona said that “at some point people are going to have to start paying what they can afford” on their student loans. However, he declined to say whether student loan repayments would resume in September, saying department officials were talking to the White House. He also said borrowers would be given “a long on-ramp with clear information” before payments restart.
If you have private student loans, they are not eligible for the payment pause or any future federal student loan forgiveness. However, you can potentially lower your monthly payment by getting a lower interest rate with a refinance. Visit Credible to compare multiple student lenders at once and choose the one with the best interest rate for you.
BIDEN ADMINISTRATION WAVES WHEN STUDENT LOAN REPAYMENT WILL RESUME AS POTUS WEIGHS DEBT FORGIVENESS
Many Americans Support Student Debt Cancellationaccording to a survey
According to an NPR/Ipsos poll, more than half of Americans (55%) said they would support forgiveness of up to $10,000 in federal student debt per borrower.
But that support waned when it came to higher amounts of debt cancellation. Just 47% of Americans said they support canceling up to $50,000 in student loans and 41% said they support canceling all federal student loan debt.
More than half of student loan holders (57%) also said they had made no payments since the start of the payment pause, according to the survey.
If you’re trying to pay off your private student loans, refinancing could help lower your interest rate and monthly payments. To see if this is the right option for you, contact Credible to speak with a student loan expert and get all your questions answered.
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