A lot of people are asking if student loans in the United States of America under President Joe Biden will be cancelled or not considering that he has voiced out that he supports student debt cancellation along with many other hints that this might be a possibility in the future.
The thing is, not only Joe Biden, but The White House has also dropped a number of hints that have suggested that they might cancel student loans in the future. But please do keep in mind that President Biden or the White House hasn’t released an official statement about this, which is why we cannot say anything about it right now.
As there is no confirmation about student loans being cancelled in the near future, we are going to talk about the things that have been hinted at by President Biden and The White House so you or anyone that’s trying to know about student loans being cancelled can get the right information.
White House Extends Zero Interest Pause On Loan Payments
The White House, which is under the rule of President Joe Biden, recently extended the zero-interest pause on loan payments, which started with Donald Trump, a former president of the USA.
The Federal Student Loan forbearance is going to end on August 31.
Not only that, but the Department of Education has also revised the existing loan forgiveness programs and has estimated that around $25 billion USD in loans have been cancelled since the start of Joe Biden’s term.
The numbers released by the Department of Education also suggest that around 1.3 million borrowers have benefited from the loan forgiveness programs.
Recently, The White House announced plans that will wipe the slate clean for over 7 million borrowers who have defaulted on their student loans, which can bring severe consequences such as adverse effects on credits, possible seizure of ongoing tax refunds and even seizure of Social Security checks.
Note: Please, right now no official confirmation has been made by Joe Biden or the Department of Education about student loans being cancelled, which is why do not assume that all student loans are going to be cancelled in full.
What Happens Next?
There are around 3 weeks left until the federal student loan repayment pause expires, meaning that millions of students and graduates that still owe money are still in the dark about what’s going to happen next.
Right now, there are two options that Joe Biden can go with, the first is to extend the current payment moratorium or they could forgive the debts that the students have in the country.
The announcement will be made in the upcoming days, but Joe Biden has not hinted anything official about their decision, meaning we would have to wait until a new press release that would be made by them in a couple of days.
Will Student Loans Be Cancelled?
Right now, there is no official confirmation if student loans are going to be cancelled or not in the United States of America, meaning we would have to wait for an official announcement, which should be made by President Joe Biden and The White House.
Right now, Joe Biden has two options, the first is to extend the current payment moratorium or they could forgive the debts that the students have in the country.
Either way, students or graduates that still have debts on their names can benefit from the decision and should consider them a huge win.
Has The White House made A Decision?
The White House has not made an official decision yet, which is why everyone is just waiting on what they are going to do.
Karine Jean Pierre, the press secretary of The White House, released a statement about the student loans being cancelled, saying:
“We haven’t made a decision yet. … The Department of Education will communicate directly with borrowers about the end of the payment pause when a decision is made. When it comes to the cancellation … the President understands firsthand the burden that a student loan has on families … and so we’re just going to continue to assess our options for cancellation.”
Secretary Pierre confirmed that Joe Biden will be making a decision before August 31 of this year.
Joe Biden Decision On Student Loan Cancellation
Joe Biden, the current president of the United States of America, is yet to make a decision on cancelling all student loans.
However, recently, Karine Jean Pierre, the press secretary of The White House, did say that President Joe Biden is going to make a decision before August 31 of this year.
Joe Biden currently has two options, the first is to extend the current payment moratorium or they could forgive the debts that the students have in the country.
Waiving Interest On Federal Student Loans
In the midst of the coronavirus pandemic, a group of Democratic senators called on President Joe Biden saying that he needs to waive interest on federal student loans through the duration of the coronavirus pandemic.
The interest for student loans has been paused during the current forbearance, meaning that those who borrowed money through federal student loan programs managed to save a total of $5 billion per month.
What Will Happen On August 31, 2022?
August 31, 2022, is the expiration of the federal student loan payment pause, meaning that Joe Biden, the current president of the United States of America, has to make a decision.
Joe Biden currently has two options, the first is to extend the current payment moratorium or they could forgive the debts that the students have in the country, and they have to choose one before August 31.
Secretary Pierre, the Press Secretary of The White House, confirmed that Joe Biden will be making a decision before August 31 of this year!
Do you think Student Loans will be cancelled? Let us know what we missed out by leaving a comment in the comments section below!