Here is a shocking new poll: student borrowers believe their student loans will be forgiven before student loan repayments restart on May 1, 2022.
Here’s what you need to know.
A new survey of CNBC shows that student borrowers don’t believe their federal student loan repayments will start again on May 1. This could cause problems for at least some student borrowers who think temporary student loan relief will continue (which it may not). Here are some highlights from the survey, including what student borrowers think it will happen next:
- 29% said student loan repayments would resume on May 1, 2022;
- 26% said President Joe Biden would extend student loan relief again;
- 28% said some student loans will get student loan forgiveness; and
- 14% said all student loans will be canceled.
(7 Ways to Get a Lower Student Loan Repayment)
Student borrowers still expect full student loan forgiveness
According to the survey, 14% of respondents believe that all $1.7 trillion in student loans will be be completely forgiven. (Do You Qualify For $5 Billion In Student Loan Forgiveness?) That’s Not What Student Borrowers to want. Rather, it is the percentage of respondents who think that will be happen. Here is what respondents said when asked if there was should be a full-scale student loan forgiveness:
- 69% said Biden should give some type of student loan forgiveness;
- 34% said all student loans should be forgiven;
- 35% said student loans should only be canceled for those who need them; and
- 27% said no student loans should be forgiven to anyone.
(Here’s Who Won’t Get Student Loan Forgiveness)
What this means for your student loans
The Biden administration has repeatedly said federal student loan repayments will resume on May 1. (How Federal Student Loans Will Change This Year). While that may change, there is no indication that Biden is planning to extend student loan relief for the fourth time due to the Covid-19 pandemic. Therefore, you should plan to restart federal student loan payments on May 1 as scheduled. When it comes to large-scale student loan cancellation, there is no clear path to mass student loan cancellation. (That said, Biden canceled $15 billion in student loans). It is important to note that there is no general plan in Congress or from the President that contemplates complete student loan forgiveness of all private and federal student loans. While Biden may change his mind, Biden has called on Congress to forgive up to $10,000 in student loans for borrowers. To date, however, Congress has not acted. Biden has even said he’s ready to forgive student loans for millions of student borrowers, but Congress hasn’t sent him a bill to sign.
Therefore, don’t expect Biden to write off all of your student loan debt by May 1 or anytime soon. (The student loan forgiveness could be the reason the Democrats lose the midterm elections). The economic and political landscapes are constantly changing and it is difficult to predict the future. That said, expecting an extension of student loan relief or large-scale forgiveness of all your student loan debt is a reckless exercise. Instead, prepare as if there will be no large-scale student loan cancellations and student loan repayments will resume as scheduled. So, evaluate all your student loan repayment options now. Here are some smart places to start: