One of the most brutal things about the possibility of student debt cancellation...is borrowers never quite seeing it happen.
Now, the Biden administration seems to be dangling the carrot once again to write-off $10,000 of student debt per person, one of his main campaign promises.
Will your student loans get cancelled? That’s what advocates for student loan cancellation are hoping will happen this year.
According to White House Chief of Staff Ron Klain, the White House could decide this year whether Biden will act on wide-scale student loan cancellation. “The president is going to look at what we should do on student debt before the pause expires, or he’ll extend the pause,” Klain said on the podcast Pod Saves America.
This suggests that Biden could announce student loan cancellation before May 1.
Alternatively, Biden could extend the student loan payment pause, and then address student loan cancellation before that student loan payment pause expires. There’s no guarantee that Biden will cancel student loans through an executive order. Previously, Biden has said he didn’t have unilateral authority to enact wide-scale student loan cancellation for all student loan borrowers.
Instead, Biden has called on Congress to cancel up to $10,000 of student loans for borrowers. Politics may come into play too. Progressives warn that Democrats could lose the midterm congressional election in November if Biden doesn’t extend student loan relief and cancel student debt. However, some argue that extending student loan relief and wide-scale student loan cancellation will alienate moderates and independents, whose votes Democrats need to hold their majorities in Congress.
As much as we'd love to see this...student debt forgiveness has been teased so many times, we're not holding our collective breath for November.
We are, however, continuing to work on the Fundfly platform so communities can help free those with the most oppressive student loans from (sometimes literal) lifetimes of debt repayment without ever hitting a "zero balance."
-Seth and Drew