Student Loan Updates

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When do I need to start paying off my federal loans again? What’s going on with loan forgiveness?
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137 days until

Current Documented End to 0% Interest, per Dept. of Ed.

Latest Updates
12 Mar 21
Stimulus Passes Without Loan Forgiveness

Biden's massive stimulus legislation has passed, but what does that mean for you? 

Well, there's no student loan forgiveness in the bill, so that 10-50k idea still has an unknown status. The administration says they'll push Congress to pass separate legislation regarding this, so it's not dead in the water, it's just still nonexistent. 

No update to 0% interest either, which is still set to end Sept. 30, 2021. 

Other noteworthy mentions of this bill? Student loan forgiveness is now exempted from taxation, and dependents left out of the first two rounds of checks are now eligible. That means that if your parents claimed you as a dependent on a tax return, you might be getting up to $1,400. 

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17 Feb 21
Biden will ask DoJ to review legal authority for cancelling 10k

Biden and his team have repeatedly pushed back on Schumer's calls for 50k, and now says that any forgiveness above 10k should be based on borrower’s income and the kind of debt in question.

“Once his team is in place at the Justice Department ... he will ask them to conduct a legal review of his authority to act by executive action in conjunction with a policy review from his Domestic Policy Council on how executive action debt relief, if any, should be targeted,” said White House spokeswoman Jen Psaki. 

No change has occurred yet. 

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4 Feb 21
Democrats Re-Introduce Resolution to Cancel 50k of Student Debt

Schumer is again calling for President Biden to cancel $50,000 of federal student debt per borrower. As a reminder, Biden's team has previously said they wouldn't use executive action and encouraged Congress to pass a bill instead. No real change is happening with this announcement. 

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21 Jan 21
Interest Pause Extended Until Sep 30, 2021

"At the request of President Biden, the Acting Secretary of Education will extend the pause on federal student loan payments and collections and keep the interest rate at 0%."

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8 Jan 21
Biden’s Team Reiterates Support for 10k Forgiveness Plan

The President Elect’s transition team said they wouldn’t use a quick executive order, but rather support congressional action to forgive $10,000 of federal student loan debt per borrower. That means we might be waiting a while longer. 

Source
23 Dec 20
Biden Says He’s Unlikely To Cancel 50k of Federal Loan Debt

The President Elect told the Washington Post “I’m going to get in trouble for saying this . . . for example, it’s arguable that the president may have the executive power to forgive up to $50,000 in student debt… Well, I think that’s pretty questionable. I’m unsure of that. I’d be unlikely to do that.”

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4 Dec 20
DeVos Extends 0% Interest on Federal Student Loans

The Secretary of Education has extended the relief measures including no interest on federal loans until January 31, 2021.

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22 Sep 20
Schumer Proposes Cancellation of 50k of Federal Student Loan Debt per Borrower

Senator Schumer submitted S.Res.711: 

“This resolution calls on the President to take executive action to cancel up to $50,000 in federal student loan debt for borrowers. Further, it encourages the President to (1) ensure that borrowers have no tax liability from the debt cancellation, (2) ensure that the debt cancellation helps close racial wealth gaps, and (3) pause student loan payments and interest accumulation on federal student loans for the duration of the COVID-19 (i.e., coronavirus disease 2019) pandemic.”

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8 Aug 20
Trump Extends 0% Interest on Federal Student Loans

Through an executive memorandum, President Trump has extended the interest holiday, along with the other aforementioned provisions, until the end of 2020. 

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27 Mar 20
0% Interest on Federal Student Loans

With the passage of the CARES Act, federal student loans are no longer accruing interest. The act suspended loan payments, stopped collections on defaulted loans and set interest rates to 0% for several months. It has since been extended. 

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22 Mar 20
Biden Proposes Cancelling 10k of Federal Student Debt per Borrower

Biden tweeted “we should forgive a minimum of $10,000/person of federal student loans, as proposed by Senator Warren and colleagues. Young people and other student debt holders bore the brunt of the last crisis. It shouldn't happen again.”

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