President Biden announced the student loan forgiveness new program which will allow those with a federal student loan to have their debt forgiven after ten years of payments. It is an excellent opportunity for those struggling to pay off their loans and looking for relief.
This program will help people with federal student loans that have a high balance and lower incomes. It may also help those having trouble making their monthly debt payments.
If you're a college graduate, you may be excited by President Joe Biden's student loan forgiveness program. His plan would cancel all federal student loan debt for undergraduates who qualify. However, it's unclear whether this will provide a real solution to the student debt crisis.
The new plan is designed to allow college graduates to reduce their monthly loan payments, although this will be limited to borrowers earning less than $125,000.
But where does President Biden’s proposal stand today? While many students and their families expect a positive decision from the federal court, everyone agrees that anything could happen. Here are some recommendations we have put together, so you don’t waste precious time sitting and waiting for a decision.
Set Money Aside
You should save the money you would have used to make your monthly loan payments while everyone waits for President Biden's proposal to forgive student loans to be approved.
Pay Off a Different Debt
If you are a student loan borrower, you can pay off any other debt you may have now while you are not required to pay for your federal student loans.
You Can Continue with Your Regular Student Loan Payments
It is only valid if you did not apply for an income-driven repayment plan or if you are not going after public service loan forgiveness.
Prepare for Any Outcome
No matter the outcome of the decision regarding your federal student loan repayment, you need to be ready. If you are facing financial hardship, you can study the possibility of applying for forbearance, deferment, or any other repayment plan options depending on your situation and needs. Take into consideration that some of these options will still accrue interest.
Do Research on Refinancing
Although refinancing a loan is not the ideal solution for everyone, it might be the perfect solution for you. Do as much research as possible and seek professional help to make an informed decision about whether to get a refinancing.
If you have any questions about the student loan forgiveness program, contact Student Loan Forgiveness USA. We have been in the student loan industry for many years and want to share the extensive knowledge we have gathered with students struggling to understand the multiple options available to repay their debt. Contact us now!