On March 11th, President Joe Biden announced that some student loan borrowers will be able to restart payments on their student loans. This is part of his plan to provide relief to those struggling with student loan debt. The announcement is part of Biden’s $1.9 trillion COVID-19 relief package that was signed into law earlier this month.
Biden Announces Student Loan Forgiveness
On March 11th, President Joe Biden announced that some student loan borrowers will receive student loan forgiveness. This announcement follows the passage of his $1.9 trillion COVID-19 relief package, which was signed into law earlier this month. Biden’s plan will provide relief to those struggling with student loan debt by temporarily suspending payments for some borrowers and providing student loans forgiveness for others.
Who Is Eligible?
The details of who is eligible for student loans forgiveness are still being finalized. However, it is expected that borrowers with federal student loans who are in default, in an income-driven repayment plan, or who are in an active repayment plan will be eligible for student loan forgiveness. Additionally, borrowers who are currently in deferment or forbearance may be eligible for relief.
When Will Payments Resume?
Biden’s plan also calls for payments to resume for some borrowers on July 1, 2021. This means that borrowers who are in active repayment plans may have to resume making payments on their student loans. Borrowers who are in deferment or forbearance may also be required to resume making payments on their loans.
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What Are the Implications?
The announcement of student loans forgiveness by President Biden is a major step in providing relief to those struggling with student loan debt. For many borrowers, this could mean the difference between being able to stay in school and having to drop out due to financial hardship. Additionally, the temporary suspension of payments for some borrowers could provide much needed financial relief in the short-term.
Overall, President Biden’s announcement of student loan forgiveness is a welcome relief for many borrowers who are struggling with student loan debt. It remains to be seen exactly who will be eligible for student loans forgiveness and when payments will resume for some borrowers. However, the announcement is a major step forward in providing relief to those struggling with student loan debt.