While running for the White House, President Joe Biden campaigned to allow up to $ 10,000 in federal student loan debt per borrower. Also, recent research suggests that many borrowers are taking out student loans based on their promises.
According to an intelligent survey, 86% of those who have taken on student debt since Biden won the 2020 election said his election pledges influenced their decisions.
In addition, about one in three of these borrowers said that Biden was unlikely to continue education if he did not cancel his debt.
Approximately 21% of polls said Biden was unlikely or very unlikely to assume the same amount of debt if he did not campaign for student loan forgiveness. Also, about a quarter of borrowers say they wouldn’t continue her research without a debt forgiveness promise.
If you have a private student loan, we recommend that you consider refinancing to reduce your monthly payments. Visit Credible to find personalized interest rates without affecting your credit score.
Senator DEM introduces bill to allow federal student loan borrowers to refinance at 0%
Borrowers still waiting for Biden to repay student loan debt
Currently, there are no plans to spread federal student debt forgiveness, but 70% of recent borrowers say they are confident that Biden will cancel the $ 10,000 student debt per borrower, according to a survey. increase.
Biden said he plans to repay part of his student loan debt, but has not yet made a formal decision on when and how much to pay. But he said he wouldn’t repay the $ 50,000 student loan debt demanded by some Democrats.
Biden told reporters at the White House in May. “I haven’t seen a $ 50,000 debt reduction. I’m scrutinizing for further debt relief and will get an answer to this in the coming weeks.”
Polls also showed that Biden’s decision on student debt could influence the democratic borrower’s vote in the upcoming presidential elections. For those who identified it as a Democrat, 31% said they were unlikely to vote for Biden in the next election unless they repaid their student loan debt. Another 23% say that is very unlikely.
Student loan repayments are currently suspended until August 31st. Former White House spokesman Jen Psaki said Biden “will make a decision to cancel a student’s debt before the student loan suspension ends.”
The potential for forgiveness of federal student loans does not apply to private student loans, but these borrowers may consider refinancing to reduce their monthly payments. Visit Credible to compare multiple student lenders at once and choose the one with the best interest rate for you.
Biden administration cancels $ 5.8 billion in student loan debt
This is the amount of debt the borrower will assume
According to a survey, more than 23% of students who borrowed student loans after Biden’s election victory borrowed between $ 5,000 and $ 10,000. About 14% of borrowers had student debt of $ 10,000 to $ 30,000.
According to the Federal Reserve Bank of St. Louis, total student loan debt has increased in recent years, reaching approximately $ 1.75 trillion in private and federal debt in June.
To address the issue of student debt, DRI Senator Sheldon Whitehouse introduced a zero-percent student loan refinancing method last month. Speed.
“Large interest payments on student loans can create a circle of debt that many Americans cannot escape. These interest payments are for buying a home, saving for retirement, investing in children. Often between the borrower and financial freedom to focus on the future. ” “This bill helps people pay off their loans faster and stay alive.”
If you want to pay off your private student loan, refinancing may help lower your interest rates and monthly payments. To see if this is the right option for you, contact Credible and talk to your student loan expert to answer all your questions.
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