Current student loan news for the week of January 31, 2022

A group of House and Senate members sent President Biden a letter demanding the results of the legal review of student loan forgiveness that took place last April – and urging him to forgive the debt if he has this authority. Here’s what you need to know about this week’s student loan trends and how they could impact your balance.

1 Current Student Loan Trend for the Week of January 31, 2022

1. Dozens of lawmakers demand results of legal review of Biden’s student loan forgiveness

Last week, more than 80 lawmakers sent a letter to President Biden asking him to announce whether he has the authority to cancel student loans without congressional approval. Among the members of Congress included in the letter are Elizabeth Warren and Chuck Schumer, who have both pleaded for up to $50,000 in student loan forgiveness since Biden’s presidency began. The letter says widespread forgiveness is “crucial to making a meaningful difference in the lives of current students, borrowers and their families.”

In April 2021, Biden ordered the US Department of Education to conduct a legal review to determine whether or not he had the authority to forgive student loan debt without an act of Congress. A heavily redacted version of the memo was released in late 2021, but the full version has yet to be made public.

How it affects student loans

A year into his presidency, Biden has focused on overhauling preexisting federal student loan relief programs instead of seeking blanket student loan forgiveness. Thanks to these incremental changes, billions of dollars in student loans have been forgiven over the past year.

However, widespread forgiveness was one of Biden’s top campaign proposals, and congressional Democrats have continued to champion the idea. This most recent letter claims that canceling $50,000 in student loan debt for each federal borrower “would provide permanent relief to 36 million Americans and help the millions more who will eventually resume their payments, their best chance to thrive in our recovering economy”.

The lawmakers sending this letter are pushing for Biden to publicly confirm or deny his legal authority to cancel student debt before student loan payments resume in May. If the memo says Biden can cancel student debt without congressional approval, he would come under even more pressure from Democrats to act.

Take away key

Democratic lawmakers are asking Biden to release the results of the student loan forgiveness legal review.

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.

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About Judith J. George

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