Here’s some encouraging news for individuals burdened by student loans, as the prospect of loan forgiveness appears to be arriving sooner than anticipated for certain borrowers.
Initially expected to be forgiven by summertime under the Biden Administration’s SAVE plan, borrowers enrolled in this initiative could now witness immediate loan cancellation in February. President Joe Biden’s recent announcement specified that individuals who took out less than $12,000 in loans and have been in repayment for a decade will benefit from this accelerated relief.
Despite the positive nature of this development, there may be some controversy surrounding it, according to Ian Anderson, a political science professor at Bakersfield College. He expressed skepticism, stating, “I would be highly surprised if there was no pushback or litigation around something like this, especially from what we’ve seen before.”
The promise of student loan forgiveness has been a significant aspect of Biden’s agenda. However, the Supreme Court’s rejection of his initial forgiveness program last June led to the creation of the SAVE plan. This plan not only expedites loan forgiveness but also halves undergraduate loan payments, prevents balances from growing if borrowers meet required payments, and reduces many borrowers’ monthly payments to $0.
The decision to accelerate loan forgiveness could be attributed to Biden’s desire to fulfill campaign promises within his potential term, especially considering the uncertainty of reelection. Anderson suggested, “This is something he said he wanted to get done; his term potentially could be over, right? There’s no guarantee that he will be reelected. So it could be a way to make good on some promises.”
Additionally, speeding up the process may serve as a safeguard against potential reversals by future administrations. Anderson explained, “If a different administration comes in and has a different view on student debt relief, it’s a little bit harder to undo processes that the previous president had put in.”
Despite the accelerated timeline, not everyone is pleased with the decision. Some senators criticized Biden, arguing that it shifts the burden of student debt onto taxpayers. However, for those who may not qualify for immediate loan forgiveness, Anderson suggested exploring alternative forgiveness programs, such as teacher loan forgiveness.
According to the Biden Administration, 6.9 million borrowers are currently enrolled in the SAVE plan, with 3.9 million experiencing a $0 monthly payment. The landscape of student loan relief continues to evolve, providing a mix of optimism and ongoing debate.
