What changes in student loans could come under Joe Biden’s presidency? Some are already speculating about student loan bailouts, loan forgiveness, and even a reduced need to apply for more student loans in the future. What are the potential changes? Keep in mind that this article is speculative–it is not breaking news, but rather what many consider as potential in 2021.
Student Loans Under Joe Biden’s Presidency
President-elect Biden has a clear plan for your student loans. As he articulated during his presidential campaign, Biden would make several changes to student loan repayment, student loan forgiveness, the cost of college, and even would cancel student loan debt.
One boon for education in general? The fact that the Secretary of Education will definitely change in 2021; many prominent educators have savaged the current Secretary of Education, Betsy DeVoss, for a general lack of competence and experience dealing with national-level education issues.
DeVos weakened protections for victims of sexual assault on campus as well as leading charges against collective bargaining rights for educators and those in the industry. At no time has DeVoss adequately addressed the crushing student loan debt issues facing many borrowers today; her replacement will likely have much to say about student loans and how they will be dealt with in 2021.
Student Loan Cancellation
Joe Biden has discussed canceling up to $10k worth of federal student loan debt for each person who owes.
Student Loan Forgiveness
Another proposal on the table for 2021? Offering general loan forgiveness for those who took out student loans to attend college as an undergraduate. This loan forgiveness could be offered to those who earn less than a specified cap–currently discussed at $125K per year but subject to change. Graduate students would not be included in the plan as currently discussed at press time.
One change that could affect future student loans? Student Loans Under Joe Biden’s Presidency could be fewer if Bernie Sanders has his way–free college is a proposal from Sanders and Elizabeth Warren that would make undergraduate work cost-free or subject to reduced prices thanks to a partial coverage option also being discussed.
None of these efforts to reduce the effects of Student Loans Under Joe Biden’s Presidency are proposals at the time of this writing. There is no legislation to discuss, and nothing at all can happen on these issues until the President Elect, Joe Biden, is sworn in as President in January 2021. But those interested in seeing such reforms come to pass should definitely contact their elected officials to make their opinions on these reforms known.
Joe Wallace specializes in personal finance, military affairs, and consumer protection topics. Since 1995, his work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and collects unusual vinyl records, which gives him an excuse to write the vinyl blog Turntabling.net.