Student Loan Forgiveness Plans Withdrawn: What It Means for Borrowers
The Biden administration has unexpectedly withdrawn two major proposals aimed at delivering student loan forgiveness to millions of Americans. The plans, which would have allowed the Education Secretary to cancel student loans for borrowers who had been repaying for decades and those experiencing financial hardship, are no longer moving forward.
A Setback for Borrowers
The withdrawal of these plans is a significant setback for borrowers who were hoping for relief from their education debts. The combined policies could have reduced or eliminated the student loans of millions of Americans. Consumer advocates are expressing disappointment and concern about the reversal on debt relief.
Trump’s Stance on Student Loan Forgiveness
President-elect Donald Trump has been a vocal critic of student loan forgiveness, calling President Joe Biden’s efforts “vile” and “not even legal.” Trump’s administration is likely to take a different approach to addressing the student loan crisis.
Existing Forgiveness Programs Remain
While the withdrawal of these plans is a blow to borrowers, the Education department still offers a range of student loan forgiveness programs. These include Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness, which provide relief to certain borrowers who work in public service or education.
Concerns About the Future of PSLF
Many borrowers are worried about the future of the PSLF program, which is written into law. Eliminating it would require an act of Congress. The Biden administration recently announced that it would forgive another $4.28 billion in student loan debt for 54,900 borrowers who work in public service through PSLF.
Exploring Other Relief Options
Borrowers can search for more federal relief options at Studentaid.gov. The Institute of Student Loan Advisors also has a database of student loan forgiveness programs by state. While the withdrawal of these plans is a setback, borrowers can still explore other options for managing their student loan debt.
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