In this article you can find some of the most recent updates on student loan forgiveness during Biden administration.
According to a spokesperson for the Biden administration, the federal government has withdrawn the new rule that could be a source of relief to student loan borrowers. Forty-eight hours before this report, The Washington Post reported that the Biden administration had filed an appeal against a decision. The decision could have allowed a student loan borrower to obtain loan forgiveness through bankruptcy.
According to one analyst, the optics of the Biden administration preventing a potential student loan borrower from receiving student loan relief may not be favorable to advocates for widespread student loan cancellation. While Biden has announced the cancellation of $15 billion in student loans, this is not the case for all of them. Student loans got canceled due to pressure from progressives in congress on vice president Biden.
Students loan forgiveness appeared to spark a firestorm within the student loan advocacy community, which was a positive development.
What are the latest student loan forgiveness updates?
The Associated Press reported early in February that the Biden administration had filed an appeal with the Supreme Court of Delaware.
The appeal was against a decision that acquitted a 35-year-old student loan borrower with epilepsy of nearly $100,000 in student loan debt. According to the lawsuit, after he graduated from Penn State in 2010, the student could not find employment. He owed $100,000 in student loans, according to the case.
As a driver for Uber, Lyft, and Grubhub in 2019, he experienced a seizure. He was employed full-time by these companies at the time of the seizure. An Ohio bankruptcy judge completely discharged the student loan debt because he faced undue hardship due to his actions. At the same time, student loan borrowers may have their student loans discharged through bankruptcy.
They must meet a disproportionately high burden of proof to grant such a discharge. As a result, student loans are more difficult to discharge in bankruptcy than mortgages and credit cards.
Nevertheless, filing an Adversary Proceeding (a lawsuit within the bankruptcy court system) is necessary to discharge student loan debt through bankruptcy. Student loan discharge under the Brunner standard, which is the most commonly used standard for student loan discharge in bankruptcy, requires that the student loan borrower has extenuating circumstances that are causing them hardship;
1- The student loan borrower has extenuating events that are causing them trouble.
2- The current situation will likely continue for the duration of the student loan; and
3- The borrower has made an honest and reasonable effort to repay the student loan in a timely and efficient manner.
Debtors would argue in this situation that paying back student loan debt would place an undue burden on the debtor’s financial situation.
How to apply for student loan forgiveness during the Biden administration?
With more student loan forgiveness options available than ever before, you must understand how to apply for student loan forgiveness and what you need to do to qualify. Vice President Joe Biden has canceled student loans totaling $11.5 billion.
As your student loans may be the next thing to go, you’ll want to be aware of what’s available, how to apply, and when you may be eligible for student loan forgiveness.
Here we are explaining what you need to know about student loan forgiveness while applying during the Biden administration:
In the case of federal student loans, several loan forgiveness options are available to you. The program determines the procedures you must follow to have your debt forgiven you are eligible.
The Department of Education has programs that can help you get rid of your federal student loan debt for various reasons, including disability and not receiving a refund. There are different eligibility requirements and application processes for each program.
Continue reading to find out how to apply for student loan forgiveness.
The following are the student loan forgiveness programs that we will discuss in detail depending on your situation:
1- You are employed full-time by the government or a nonprofit organization.
2- You’ve been diagnosed with a permanent disability.
3- You must make payments for a minimum of 20 years.
4- Your high school misled you.
5- You work in a low-income neighborhood.
6- Your school has been closed.
How much has Biden forgiven student loan debt?
There is much criticism about the lack of a broad-scale student loan cancellation. Biden has canceled $15 billion in student loans during his first year in office. More than 675,000 student loan borrowers benefited from this program, more than any other president. Here is how it is:
Approximately $1.5 billion will be spent on Borrower’s defense and repayment.
Total and permanent disability costs the United States $7 billion.
Students at ITT Tech owe $1.3 billion.
Loan forgiveness for public sector employees: $5 billion
It is only the beginning of the process. Among other options, student loan borrowers can expect additional student loan cancellations, at the very least through public service loan forgiveness: the total and permanent disability and borrower defense to repayment.
Student loan relief brings additional benefits.
In addition to the $15 billion in student loan cancellation, Biden, President Donald Trump, and Congress provided billions of dollars in additional student loan forgiveness through the Student Loan Relief Act.
In March 2020, Congress passed the Cares Act, which included a $2.2 trillion stimulus package. Students have received unexpected loan relief due to the stimulus package. It included temporary student loan forbearance, no new interest on federal student loans, and no collection of student loans in default.
Starting in March 2020, students who do not make payments on their student loans each month will be able to “count” their missed payments toward student loans forgiveness programs. These payments include such as income-driven repayment and public service loan forgiveness. Ever since Vice President Joe Biden had taken office, he had extended student loan relief three times.
The cancellation of $15 billion in student loans will benefit borrowers with student loans. According to the United States department of education, students who have taken advantage of student loan relief are estimated to have saved a total of $5 billion per month.
By the time federal student loan payments resume on May 1, 2022, student loan borrowers will have saved more than $120 billion in interest on their student loan balances.
How to avail student loans in bankruptcy?
Other than meeting the Brunner standard in most federal circuits, it is critical to recognize several other critical aspects of student loan repayment and forgiveness, detailed below. $50 billion in student loan debt may be eligible for bankruptcy protection.
Student loan discharge in bankruptcy
It is also possible to forgive student loans, including private ones.
Student loan servicers should not misrepresent a borrower’s ability to discharge student loans in bankruptcy if they default on their loans.
Suppose you’re having trouble making your student loan payments. In that case, you should consult with an attorney to determine if bankruptcy is an option in your situation for loan forgiveness.
Consider alternatives to traditional repayment plans, such as income-driven repayment plans, that base your monthly payment on your discretionary income and household size. There are seven ways to lower your student loan payment.
The possibility of widespread student loan forgiveness exists, but don’t hold your breath for general student loan cancellation shortly. Because of the gridlock in Congress, it is unlikely that it will become law.
Temporary student loan relief ends, and federal student loan payments are resuming shortly. Now is the perfect timing for considering repayment. Evaluate all of your options to determine the best fit for you.
Here are some strategies for paying student loans more quickly:
1- Refinancing of student loans (lower interest rate combined with a more down monthly payment)
2- Plans for debt repayment that are based on your income (lower monthly payment)
3- Loan forgiveness for public sector employees (student loan forgiveness for federal loans)
Do you qualify for Joe Biden student loans?
The Cardona Foundation has canceled approximately $1 billion in student loan debt for about 72,000 people. They include those who have defrauded colleges and universities for-profit since Biden took office and more than $1.3 billion in student loan debt for more than 41,000 borrowers with disabilities.
Biden called for more drastic measures while campaigning.
In his emergency action plan (also known as the COVID-19 relief plan), he asked Congress to immediately cancel $10,000 in the student loan debt. It was the platform he ran for president in 2012.
On the other hand, student loan cancellation did not include in Biden’s $1.9 trillion economic stimulus package. While the cancellation of student loans appears to be something he is still interested in, it is unclear how this will become a reality for him and his family.
While campaigning, Biden proposed that the following borrowers will be exempt from student loans for the rest of their lives:
1- All public college graduates earning less than $125,000 per year
2- All graduates of private HBCUs and MSIs earning less than $25,000 per year
3- All borrowers earning less than $25,000 per year will be exempt from student loan debt for the rest of their lives.
Individual loan cancellations for all federal loan borrowers should increase to $50,000, according to some senate democrats.
Who would be eligible for loan forgiveness from the federal government?
Biden wants to establish a new, straightforward program for borrowers who devote their post-college careers to public service. His proposed plan will forgive up to $50,000 in undergraduate or graduate student loan debt for eligible public service workers in exchange for performing up to five years of national or community service and receiving a $10,000 per year salary reduction.
Biden stated that he does not intend to replace the existing Public Service Loan Forgiveness (PSLF) program, which is available to public school teachers, government employees, and other nonprofit workers. Instead, he wants to “fix” the existing program, which has turned down 99 percent of applicants, by making it accessible to those who qualify.
How can I get help with my student loan forgiveness 2021?
You must apply for an Income-Driven Repayment Plan and Joe Biden Student Loans as soon as possible. If you meet specific requirements, you may even be eligible for a $0 monthly payment or student loan forgiveness.
Please take advantage of our assistance with your student loan forgiveness application 2022 programs and Joe Biden student loan forgiveness. You must apply for an Income-driven repayment plan and Joe Biden student loans as soon as possible. If you meet specific requirements, you may even be eligible for a $0 monthly payment or student loan forgiveness.
What is student loan forgiveness for public servants?
The public service loan forgiveness (PSLF) program allows qualifying federal student loans to forgive after 120 qualifying payments (10 years), provided that a qualifying public service organization employs the borrower.
Employing your skills in public services, such as in government or specific non-profit organizations, may qualify you for PSLF. Your employment may also be eligible if your employer provides certain types of qualifying public services, such as education or health care.
If you want to find out more, follow the steps below:
Step 1: Educate yourself on your options
As a result of the COVID-19 emergency, the United States Department of Education has announced a change to the PSLF program rules for a limited time.
After completing the necessary steps (described below), any prior federal student loan payment will qualify as a qualifying payment under the new rules. Regardless of loan type, repayment plan, or even if the payment made was in full or on time, it is true. All you need is a job that meets the qualifications.
Those who already have their student loans consolidated into the Direct Loan Program and those who apply to consolidate their student loans into the Direct Loan Program by October 31, 2022, will be affected by this change.
You can find further information at studentaid.gov/announcements-events/pslf-limited-waiver.
To find out what kind of federal student loans you have, go to studentaid.gov/aid-summary, a resource provided by the United States Department of Education.
At studentaid.gov/pslf, you can use the PSLF help tool to figure out your next steps in the process of seeking forgiveness.
Step 2: Enroll in the program and obtain certification
Suppose you qualify for the PSLF limited waiver. In that case, any prior federal student loan payments made after October 1, 2007, will be counted toward PSLF if you complete the necessary procedures. If you have a direct loan or another type of federal student loan, the following steps will be determined by that loan type.
Steps to take next
For borrowers who already have direct loans but have not yet completed a PSLF form, you can use the PSLF help tool to complete the form and submit it by October 31, 2022, to be eligible for credit toward PSLF.
You should set an annual reminder to submit an updated PSLF form if you have a Direct Loan and have previously completed the PSLF form for all of your qualifying employment. It will ensure that you are still on track to receive PSLF benefits.
Suppose you have at least one Federal Family Education Loan Program loan, a Perkins Loan, or other federal student loans. In that case, you must submit a Direct Consolidation Loan application by October 31, 2022, to be considered for consolidation. Parent PLUS loans are ineligible for the PSLF waiver due to their high-interest rate.
Suppose you have worked for more than one qualified employer during your qualifying employment history. In that case, you must complete a PSLF form for each eligible employer. To be considered, the documents must be submitted by October 31, 2022.
Please keep in mind that, in most cases, Parent PLUS loans do not qualify for the limited waiver. To learn more about your options, speak with your service provider.
Step 3: Communicate with your service provider
It is the responsibility of your loan servicer to provide you with accurate information about your loans. You will be notified about the program when you submit the PSLF form, and your servicer must track your progress after that.
You can also file a complaint against your service provider if you believe they are not providing you with accurate information about your progress toward PSLF. You can do so online or by calling
Consider the following
The company that services your loan can change after submitting the PSLF form. Suppose you are unsure of who is responsible for servicing your student loans. In that case, you can find out by visiting the Federal Student Aid website of the United States Department of Education. You can obtain information about your federal student loans, including the identity of your federal student loan servicer, by visiting this website.
Keep a copy of your receipts as proof of your payments. A PDF or email confirmation should be available every time you make payment. You should be able to choose which you prefer. Your account statements should also include a record of the payment made in the previous month. Keep them safe!
Check the total amount of your payments. The PSLF Help Tool assists you in meeting your goal of making 120 qualifying payments. With each PSLF certification form submission, you will receive a count of how many qualifying payments you made in the past 12 months. See if it corresponds to your records. You are not required to complete the 120 qualifying payments in a single period.
Payments are made in one lump sum. You can make payments (or pre-payments) on your qualifying federal student loans in the future. All of those payments (or pre-payments) will be counted toward your PSLF qualifying payment count if you meet all of the other program requirements. Pre-payments apply to your account for up to 12 months or until the next time you are required to recertify for your income-driven repayment (IDR) plan, whichever comes first.
What is student loan forgiveness if your school closes?
If your school closes, you can be eligible for student loan forgiveness. In this case, if your college or university closes while you’re enrolled or shortly after you withdraw, you may qualify for partial or complete repayment of your student loan debt.
Eligible loan types include Direct Loans, Perkins Loans, and Federal Family Education Loans (FFEL). Partially canceled Perkins Loans are suitable for total student loan cancellation, whereas fully canceled Perkins Loans are not. You may qualify for student loan forgiveness for Perkins Loans if you work or volunteer for a qualifying organization. Perkins Loans can also discharge in certain circumstances.
To be eligible for Perkins Loan student loan forgiveness, you can apply to the school that issued your student loan. Depending on where you received your Perkins Loan, you can also apply to the student loan servicer for your school.
What is student loan forgiveness for teachers?
Teacher loan forgiveness is an additional option for teachers and loan forgiveness through public service employment. A teacher loan forgiveness program requires you to work full-time for five academic years in a low-income school to be eligible for loan forgiveness. Both direct loans and federal family education loans are eligible, and you may be able to receive up to $17,500 in student loan forgiveness. Suppose you intend to teach for at least five years. In that case, you are eligible for total student loan forgiveness through the public service loan forgiveness initiative.
What is student loan forgiveness for Perkins loans?
Partially canceled Perkins Loans are eligible for complete student loan cancellation, whereas fully canceled Perkins Loans are not. You may qualify for student loan forgiveness for Perkins Loans if you work or volunteer for a qualifying organization. Perkins Loans also discharge in certain circumstances.
If you have a Perkins Loan, you must apply for student loan forgiveness through the school that issued your loan. You can also apply through the school’s student loan servicer to be eligible for student loan forgiveness.
What is student loan forgiveness for borrower defense to re-payment?
According to Biden, borrower defense to repayment has resulted in the cancellation of $1.5 billion in student loans for student loan borrowers. With borrower defense to refund, you may be able to get partial or complete cancellation of your student loan.
It is possible to qualify for student loan forgiveness through borrower defense to repayment. If your college or university misled you or did not receive the educational services you promised while attending college or university.
What is student loan forgiveness due to death?
Students who borrow federal student loans or parents who borrow under the Parent PLUS program die have those loans discharged. It is valid for ‘Direct Loans,’ ‘Perkins Loans’, and ‘Federal Family Education Loans.’
What is student loan forgiveness for total and permanent disability?
If you have a total and permanent disability, you may be eligible for student loan forgiveness. According to the Associated Press, the Biden administration has canceled $5.8 billion in student loans for students who have been diagnosed with a total and permanent disability. (Here’s what happens next in the case of student loan cancellation.) You can provide information from the social security administration of the United States, the department of veterans affairs of the United States, or your physician.
What is student loan forgiveness in bankruptcy?
In contrast to mortgages and credit card debt, student loans have traditionally been ineligible for discharge in bankruptcy. However, suppose you can demonstrate an undue hardship following the Brunner Test. In that case, you may be able to get a complete discharge of your student loans. (Here are three strategies for lowering your student loan payments.)
When filing for bankruptcy, you must file an Adversary Proceeding, a lawsuit in bankruptcy court, to have your student loans discharged.
There are few options available for student loan forgiveness. However, if you do not qualify, make sure you know all available options for repaying your student loans. Some of the most popular choices for paying off student loans more quickly include:
1- Refinancing of student loans (lower interest rate combined with a more down monthly payment)
2- Plans for debt repayment that are based on your income (lower payment, but same interest rate)
3- Loan forgiveness for public sector employees (student loan forgiveness for public servants)
To recapitulate, ever Since President Joe Biden took office in January 2021, hundreds of thousands of Americans have had their student loan debt forgiven or reduced to zero, with some borrowers having their balances consolidated to zero entirely.
A significant portion of the population benefited from federal student loan forgiveness. According to the Education Data Initiative, approximately 43 million borrowers default on college loans totaling $1.75 trillion in principal and interest. There are 39,351 borrowers with an average balance of $39,351.
Continue reading to find out if you are eligible to have your student loans forgiven or canceled. Suppose you’re one of the many borrowers who will still owe student debt in the future. In that case, you should consider your repayment options, including student loan refinancing or consolidation.