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President Joe Biden campaigned to cancel $10,000 in student loans for most borrowers, but only a fraction of Americans with student debt qualify for debt relief so far. While widespread cancellation may still be out of reach, thousands of student loans who were misled about the value of their education have canceled their student loans since Biden took office.
The US Department of Education canceled a total of more than $1.5 billion in student loans for nearly 92,000 borrowers under the Biden administration from July 2021. Keep reading to see who qualifies for college debt forgiveness and what to do with your loans if you don’t qualify, including student loan refinancing.
If you decide to refinance your student debt, go to Credible to compare rates from multiple lenders without affecting your credit score.
98% OF GOVERNMENT LOAN APPLICATIONS REJECTED: WHAT TO DO WITH YOUR COLLEGE DEBT
Who Qualifies for Student Loan Forgiveness Under Biden?
Scammed student loan borrowers have completely canceled billions of dollars in college debt under the borrower defense program, allowing former students to apply if they believe their school has engaged in misconduct.
Biden’s administration has cleared college debt from select borrowers who have attended the following institutions:
- American Career Institute
- The Court Reporting Institute
- Corinthian Colleges
- ITT Technical Institute
- Marinello Schools of Beauty
- Westwood College
The department found that the institutions mentioned above misrepresented their curricula, either by falsifying the value of the degree, the time it takes to complete the program or earning potential after graduation.
US Education Secretary Miguel Cardona said in a statement that the ministry “stands up for students whose colleges have benefited from them,” indicating that the Biden administration will continue to analyze borrower claims in the future.
The Department will continue to do its part to quickly and fairly review and approve borrower defense claims so that borrowers receive the relief they need and deserve. We also hope these approvals serve as a warning to any institution engaged in similar behavior that this kind of misrepresentation is unacceptable.
HERE ARE SOME OF THE BEST STUDENT LOAN FORGIVEN PROGRAMS
What to do if you do not qualify for cancellation of the student loan?
While nearly 92,000 borrowers have been eligible for student loan forgiveness under the Biden administration, approximately 44.7 million Americans have federal and/or private student loans, according to Student Loan Hero. The vast majority of borrowers still owe student debt, and it’s still uncertain whether Biden will take more widespread forgiveness measures.
With Federal Student Loan Payments set to resume in October, millions of borrowers need to prepare their finances so they don’t default on their loans. But don’t just wait for a discharge of your federal student loan debt. If your student loans have not been canceled, you may want to consider an alternative student loan repayment program:
- Enroll in an income-driven repayment plan (IDR). Federal student loan borrowers may be able to temporarily reduce their payments to $0, depending on income.
- Apply for federal student loan tolerance. You may be eligible for an extended payment break (deferral) of up to 36 months if: you are unemployed or you have financial problems.
- Refinance your student loans. Private student loan refinancing rates fluctuate around historic lows, meaning it is possible to lower your interest rate and monthly payment.
It is not recommended to refinance your federal student loans as it will not make you eligible for federal protections such as IDR and administrative forbearance. But if you have private loans, now this is the perfect time to refinance your debt this way you can save money on interest and even pay off debts faster.
You can compare student loan refinancing offers about multiple private lenders on Credible’s online loan marketplace.
THESE COMPANIES OFFER SUPPORT PROGRAMS FOR THE REFUND OF STUDENT LOANS
How do you know if student loan refinancing is right for you?
Student loan borrowers can save tens of thousands of dollars over the life of their loans by refinancing, but it is not suitable for everyone. You’ll want to think twice before refinancing your federal loans, and you should only refinance if you can qualify for a rate lower than what you’re currently paying.
Analyze your loan summary to see what type of loans you have and check your current interest rate. Thereafter, get prequalified for student loan refinancing on Credible to see if you qualify for a lower rate under a new student loan manager. You can also use a student loan refinancing calculator to see how much money you can save with a new interest.
Contact an expert loan expert at credible om see if this option is right for you.
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