President Biden’s economic stimulus bill, the Build Back Better Act, does not include the cancellation of student loans and has removed any provision for free community college. Instead, the law focuses on creating employment opportunities for middle-class families by making college education more accessible. Here’s what you need to know about this week’s trends and their potential impact on your student loans.
1 current trend in student loans for the week of November 1, 2021
1. The Build Back Better framework does not include student loan cancellation or free community college
Late last week, President Biden announced part of his latest stimulus bill, the Build Back Better Act. This new framework cuts the bill from $ 3.5 trillion to $ 1.75 trillion, removing previous provisions that would have made two years of community college free for every student. Also absent is any form of student loan forgiveness.
That said, students will still see benefits in the current framework. The administration is focused on training the workforce through an equitable higher education system rather than canceling student loan debt. “The Build Back Better framework will make education beyond high school – including training for high-paying jobs available now – more affordable,” the White House press release said.
Here are Biden’s higher education plans if the bill passes:
- Increase the maximum Pell grant to $ 550 and expand access to Deferred Action for Childhood Arrivals (DACA) beneficiaries.
- Invest in Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and Minority Serving Institutions (MSI) to provide financial assistance to low-income students and improve research facilities in schools.
- Invest in affordable job training at universities and community colleges.
- Invest in degree programs and practices.
How it affects student loans
In terms of college proposals, the current iteration of the Build Back Better law would benefit students with financial needs the most; increasing the maximum amount of the Pell scholarship could reduce the need for student loans for students eligible for assistance. Students attending institutions serving minorities might also see indirect benefits in terms of better research programs and more opportunities for financial aid.
For the bill to be enacted, the framework must first be passed by Congress. If adopted, the framework will serve as a guide when drafting legislation. While the president calls on Congress to pass the bill as quickly as possible, there is no official timetable.
Key to take away
President Biden’s most recent stimulus bill no longer includes free community college, but promises more Pell Grant funds and other investments in education.
Here’s how to prepare
Whether you’re new to the area of student loans or already in advanced repayment, it’s wise to stay on top of how your student loan rates might change. As 2021 continues, more opportunities for cheaper loans or loan cancellation may open up; Keep an eye on the Bankrate student loan news center for the latest trends.