The Biden-Harris administration has decided to no longer allow interest on student loan debt to be waived through the First Time Homebuyer program. This was decided after taking into consideration the risks and rewards associated with the decision, weighing them accordingly. Below you will find a detailed explanation of the process and decisions made in regards to this topic by the Biden-Harris administration. If you have any questions or concerns, please do not hesitate to contact our office directly.
Student loan debts will be erased
Today, the Biden-Harris administration gave an update on their decision about student loan debt. They have decided to erase all student loan debts for those who qualify. This is amazing news for so many people who have been struggling to pay off their loans. It will provide relief and help boost the economy. If you or someone you know has student loan debt, tell them to check and see if they qualify for this program.
To qualify for erasing your student loans, you must have been a US citizen for at least three years and your household income can’t exceed $60,000. Eligible households who apply through December 31st will receive their refund via an electronic deposit in either December 2019 or January 2020. Families with loans taken out under any of these programs: Federal Family Education Loan (FFEL) Program, William D Ford Federal Direct Loan Program (Direct Loans), or any Perkins Loan program are eligible to apply. If you had an FFELP or Direct Loan disbursed on or after October 1st 2017, then you’re also eligible to apply.
90% of students qualify for this
As part of President Biden’s ongoing effort to provide relief to Americans struggling during the COVID-19 pandemic, the administration has decided to extend a grace period for federal student loan payments. This means that no payments will be due on these loans until after September 30th, 2021. This applies to all federal student loans, including Direct Loans, FFEL Program Loans, and Perkins Loans. Interest will still accrue during this time.
Student Loan Debt Relief
Under the new plan, there will be a moratorium on federal student loan payments and interest will be waived for at least 60 days. After that, borrowers will have the option to set their monthly payments at 0% for up to 20 years if they have certain types of loans.
This is amazing news for the more than 45 million Americans who currently have student loan debt. It will provide much-needed relief during this difficult time and help ensure that borrowers are able to stay on track with their repayments.
There are still some details that need to be ironed out, but this is a huge step in the right direction. We’ll continue to update you as we learn more.
Data systems are still being developed, so there are no details yet
It’s been over a month since President Biden and Vice President Harris took office, and they’ve already made progress on one of their key campaign promises: student loan debt relief. On February 18th, they held a meeting with Education Secretary Miguel Cardona to discuss the status of student loans. While data systems are still being developed, the administration is committed to providing relief for borrowers.
Congress needs to sign off on this program
This program would provide some measure of relief to the millions of Americans who are struggling to repay their student loans. However, it needs to be approved by Congress before it can become a reality. This could be a difficult process, as there are many members of Congress who are opposed to any form of government assistance. However, if this program is approved, it could provide much-needed relief to those who are struggling to repay their loans.
Republicans have expressed anger towards this proposal
Republicans have angrily denounced President Biden’s proposal to cancel $10,000 of federal student loan debt per borrower. They argue that this would be a bailout for lazy people who made bad decisions and should have to pay for their own mistakes. Some also argue that this would be unfair to those who have already paid off their loans, as they would essentially be subsidizing those who have not. Additionally, critics say that this would incentivize more people to take out loans and would lead to even more unsustainable levels of debt in the future.