President Joe Biden held a press conference on January 19, a year into his term, to address several economic concerns, including the supply chain crisis and record inflation. But when asked about his campaign promise to forgive $10,000 in student loan debt per borrower, the president declined to comment.
At the end of the two-hour briefing, Biden was asked “two simple questions” — the first was about his progress on widespread student loan forgiveness, and the second was about reforming the Electoral Count Act. While the president took the time to address that last question, he abruptly ended the press conference before commenting on the cancellation of student loan debt.
“Friends, it’s almost 6 a.m. now,” Biden said. “With all due respect, I’ll see you at the next conference.”
Keep reading to learn more about the likelihood of a large student loan forgiveness, as well as your alternative student debt repayment plans like refinancing. You can visit Credible to learn more about student loan refinancing and decide if this strategy is right for your financial situation.
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Will Biden Forgive Student Loans?
Since taking office, President Biden has been reluctant to clarify his administration’s position on federal student loan debt forgiveness. But as a presidential candidate, Biden has made it clear that he will strive to pay off $10,000 in federal student loan debt per borrower.
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Many prominent Democrats, including Sen. Elizabeth Warren and Senate Majority Leader Chuck Schumer, have pushed to ask the president to forgive student loan debt. They argue Biden has the power to forgive up to $50,000 in student loans per borrower using executive action under the Higher Education Act of 1965.
However, not all lawmakers agree that this includes the widespread cancellation of student loans. House Speaker Nancy Pelosi has previously said debt cancellation “must be an act of Congress.” In one February 2021 town hallthe president has indicated that he does not believe he has the legal authority to enforce the cancellation of student debt.
White House press secretary Jen Psaki explained in December 2021 that Biden was “happy to sign” debt forgiveness legislation passed by Congress, blaming House and Senate lawmakers. . But it would be difficult for Democrats to push the cancellation of student loans in a tightly divided Congress that was unable to pass Biden’s spending bill, the Build Back Better Act.
With the future of student loan forgiveness unclear, millions of Americans are burdened with $1.75 trillion in college debt, according to the Federal Reserve. If you’re looking for alternative student loan repayment options, compare student loan refinance offers on Credible for free without affecting your credit score.
THE PUBLIC SERVICE LOAN REPAYMENT PROGRAM (PSLF) IS JUST EASIER FOR 550,000 BORROWERS
How to determine if you should refinance your student loans
Student loan refinancing involves taking out a private student loan with better terms to pay off your student debt. Refinancing at a lower interest rate can help you lower your monthly payments, pay off debt faster, and save money on interest charges.
A recent analysis by Credible found that qualified student borrowers who refinanced a longer-term loan were able to reduce their monthly payments by more than $250 on average, while those who refinanced a short-term loan saved nearly $17,000 in interest charges. over the term of the loan.
Despite its money-saving benefits, student loan refinancing isn’t for everyone. Refinancing your federal student debt into a private loan would make you ineligible for certain Department of Education protections, such as income-contingent repayment and federal student loan forgiveness programs.
If you don’t plan to use these federal programs, however, it may be worth refinancing at a lower interest rate. And if you already have private student loans, you won’t risk losing federal benefits by refinancing.
As a bonus, student loan refinance rates are near all-time lows, according to data from Credible. You can browse student loan refinance rates in the table below and visit Credible to see your estimated offers to decide if refinancing is worth it for you.
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