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Student Debt Relief News: The Latest on Federal and Private Student Loans
With student debt in the United States surpassing $1.7 trillion, it’s no wonder that student debt relief news and information is in high demand. From proposed legislation to changes in repayment options, here’s a rundown of the latest developments affecting both federal and private student loans.
Federal Student Debt Relief News
The Biden administration has taken several steps to provide student debt relief for federal student loan borrowers, though much of it is still in the proposal stage. Here are the highlights:
– Extension of CARES Act Relief: Under the CARES Act, federal student loan borrowers were given a break from making payments and accruing interest through September 30, 2020. The Biden administration has extended this relief through September 30, 2021.
– Proposal for $10,000 in Student Debt Cancellation: President Biden campaigned on the promise of cancelling up to $10,000 of federal student loan debt per borrower. While this has not yet come to fruition, the administration has asked the Department of Justice to review the President’s authority to cancel federal student loan debt through executive action.
– Extension of Payment Pause: The Biden administration has extended the payment pause and interest waiver on federal student loans through at least September 30, 2021. This means borrowers are not required to make payments and interest is not accruing during this time.
– Proposal for Free Tuition at Community Colleges: President Biden has also proposed making community college tuition-free for all students and providing grant aid for low-income students attending historically Black colleges and universities (HBCUs), tribal colleges and universities (TCUs), and minority-serving institutions (MSIs).
Private Student Debt Relief News
Private student loans do not offer the same protections as federal loans, and so the relief options are different. Here’s what’s happening with private student loan debt relief:
– State Loan Forgiveness Programs: Some states, such as New York and Maryland, offer loan forgiveness programs for borrowers who meet certain requirements. These programs may target specific professions (such as healthcare or education) or may be geared towards borrowers who live in certain areas or work in certain fields.
– Refinance Opportunities: Some private lenders offer opportunities to refinance high-interest student loans, which can reduce monthly payments and overall interest costs. However, refinancing can mean losing federal protections and benefits.
– Payment and Interest Relief: Some private lenders are offering temporary relief for borrowers impacted by COVID-19. This can include forbearance (pausing payments) or reduced interest rates for a limited time.
FAQs
To help you better understand the latest student debt relief news, here are some frequently asked questions:
Q: How much student debt is in the United States?
A: As of the first quarter of 2021, student debt in the United States surpassed $1.7 trillion.
Q: What is the CARES Act relief for student loans?
A: Under the CARES Act, federal student loan borrowers were given a break from making payments and accruing interest through September 30, 2020. The Biden administration has extended this relief through September 30, 2021.
Q: Is student debt cancellation likely to happen?
A: While President Biden has proposed cancelling up to $10,000 in federal student loan debt, it is not guaranteed to happen. Legal challenges and political opposition could prevent it from becoming law.
Q: How can I refinance my student loans?
A: Private lenders offer opportunities to refinance student loans, but it may mean losing federal protections and benefits. Be sure to shop around and compare options before refinancing.
Q: What is loan forbearance?
A: Loan forbearance allows borrowers to pause payments on their loans without going into default. However, interest may continue to accrue during this time.
Q: Are private student loans eligible for loan forgiveness?
A: Private student loans are not eligible for federal loan forgiveness programs. However, some states offer loan forgiveness programs for certain borrowers. It’s important to research options and requirements in your state.
Stay Informed with Student Debt Relief News
As student debt continues to rise in the United States, it’s more important than ever to stay up-to-date on the latest news and developments. Whether you have federal or private loans, knowing your options for relief and repayment can help you make informed decisions about your finances. Keep an eye on proposed legislation and changes in policies to see how they may affect your student debt.
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Article Summary:
As student debt in the United States surpasses $1.7tn, student debt relief news is in demand. The Biden administration has taken several steps to provide student debt relief for federal student loan borrowers. It has extended the CARES Act relief through September 30, 2021, proposed $10,000 in student debt cancellation per borrower, and extended payment pause and interest waivers on federal student loans through at least September 30, 2021. The administration has also proposed making community college tuition-free for all students and providing grant aid for low-income students attending historically Black colleges and universities (HBCUs), tribal colleges and universities (TCUs), and minority-serving institutions (MSIs). Private student loans do not offer the same protections as federal loans; relief options include some states offering loan forgiveness programs or private lenders offering opportunities to refinance student loans.
