As of September 2021, there has been no extension of student loan forgiveness programs in the United States.
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While student loan forgiveness has been a hotly debated topic in the United States, as of September 2021, there has been no extension of any federal student loan forgiveness programs. This means that borrowers are still responsible for paying back their student loans, even as the country continues to grapple with the economic fallout of the COVID-19 pandemic.
Despite the lack of extension, there have been some developments in the student loan forgiveness landscape. President Joe Biden has called for $10,000 in student loan forgiveness for all borrowers, though this proposal has yet to come to fruition. Additionally, there are certain programs in place that offer loan forgiveness under specific circumstances, such as the Public Service Loan Forgiveness program for those working in qualifying public service jobs and the Teacher Loan Forgiveness program for those in the teaching profession.
As the debate over student loan forgiveness continues, it remains to be seen what actions will be taken at the federal level. In the meantime, borrowers are advised to stay on top of their student loan payments and explore any potential forgiveness options for which they may be eligible.
As former President Barack Obama once said, “The cost of college education today is so high that many young people are giving up their dream of going to college, while many others are graduating deeply in debt.” This sentiment speaks to the challenges faced by many borrowers, who are burdened with exorbitant student loan debt even as they work to secure their financial futures.
Here are some interesting facts about student loan debt in the United States:
- As of 2021, the total amount of student loan debt in the U.S. is over $1.7 trillion.
- The average student loan debt for the Class of 2020 was $37,584.
- Student loan debt is the second largest category of consumer debt in the U.S., after mortgage debt.
- Roughly one in four U.S. adults has student loan debt.
- Women hold two-thirds of all student loan debt in the U.S.
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The pause on student loan payments will be extended further, according to a video posted by President Biden on Twitter. This extension is due to a lawsuit by conservative opponents trying to halt Mr. Biden’s debt forgiveness plan, and it will continue until 60 days after the lawsuit is resolved. If the lawsuit remains unresolved by June 30th, payments will resume 60 days after that.
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The Biden administration is yet again extending the pause on federal student loan payments, a benefit that began in March 2020 to help people who were struggling financially due to the Covid-19 pandemic. The extension comes as the Biden administration’s student loan forgiveness program is tied up in the courts.
The extension — coming just a week before payments were scheduled to resume — was included in Biden’s announcement on Twitter that the government will forgive up to $20,000 of federal student loan debt for borrowers who have received Pell Grants and $10,000 for all others.
In November, the Education Department announced the latest extension of the student loan payment pause. It was the fifth time the Biden administration extended the pause first put in place under President Donald Trump.
President Biden’s Aug. 24 announcement also extended a pause on monthly student loan payments and provided details on a new proposal to create a more affordable income-driven repayment plan. On Nov. 22, in response to court battles that have temporarily halted the government from discharging any debt, Mr. Biden extended the pause.
To help ensure a smooth transition back to repayment, the Department of Education is extending the student loan pause a final time through December 31, 2022. No one with federally-held loans has had to pay a single dollar in loan payments since President Biden took office.