Biden did not cancel student loans, but does not pay for student loan forgiveness

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President Joe Biden hasn’t canceled your student loans, but don’t pay for your student loan cancellation.

Here’s what you need to know – and what it means for your student loans.

Student loans

If you follow the latest headlines on student loans, you know that Biden has not embraced full-scale student loan cancellation. Despite pressure from Senator Elizabeth Warren (D-MA) and Senate Majority Leader Chuck Schumer (D-NY) to cancel up to $ 50,000 in student loans, Biden chose to focus on canceling targeted student loans. Since becoming president, Biden has canceled more student loans than any president. This includes $ 10 billion in student loan cancellations, including $ 1.5 billion in student loans canceled in this way and $ 5.8 billion in canceled student loans for student loan borrowers with total and permanent disabilities. . (Find out here how to request a student loan forgiveness). Without a large-scale student loan forgiveness, you might be wondering, “Should you stop paying your student loans?” If you haven’t got your student loan forgiveness, you might be tempted to pay a company to help you with your student loan forgiveness. Why? The lack of large-scale student loan cancellations has resulted in some student loan borrowers falling victim to potential student loan scams. Here is what you need to know in order not to lose money:

1. There is no Biden student loan forgiveness

If someone promises you “Biden Student Loan Cancellation”, that’s a scam. The term “Biden student loan cancellation” refers to student loan cancellation through the US Department of Education for your federal student loans. Biden’s student loan cancellation also refers to the student loan cancellation adopted by Biden under applicable law. Therefore, “Biden student loan cancellation” refers to the cancellation of the federal student loan through the federal government. No business can cancel your student loans. Don’t believe a company that promises student loan forgiveness. (However, here’s how to get a student loan discount). A typical scam involves a company – usually through an email or ad – that promises to cancel your student loans through the Biden student loan forgiveness program. Here’s the thing: There is no Biden student loan forgiveness through a business. This scam resembles the Public Service Loan Forgiveness program, which Congress created and which President George W. Bush, not Biden, enacted in 2007. However, only the US Department of Education can cancel your student loans through the Public Service Loan Forgiveness program. , not a private company. (Biden Student Loan Cancellation Means 3 Things For Your Student Loans).


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