Current student loan news for the week of August 2, 2021
Last week, House Speaker Nancy Pelosi said President Biden will not be able to write off student loan debt without congressional approval. Here’s how Pelosi’s statement and the student loan cancellation conversation could impact your student loan debt.
1 current trend in student loans for the week of August 2, 2021
1. Nancy Pelosi argues that Biden cannot cancel student loan debt through executive action
As President Biden awaits the results of a legal review of his power to cancel student loan debt through executive action, House Speaker Nancy Pelosi told reporters that ‘she didn’t believe that was possible.
According to Pelosi, the president can “postpone, delay but not forgive” student loans. While many Democrats pushed Biden to use his executive power to write off debt, Pelosi said it would take an act of Congress.
In the same interview, Pelosi also raised concerns about the ethics of mass forgiveness, saying it wouldn’t be fair for childless families in college to see their taxes increase because of mass forgiveness. The cancellation of this debt “must be viewed fairly when we have something that offers an opportunity – that’s the big word, an opportunity – to all American families,” she said.
How it affects student loans
The administration’s official legal review on student loan cancellation has been underway since April, so any final possibility of student loan cancellation will have to await the conclusion of the US Department of Education. Pelosi’s comments signal that the Democratic Party is still divided on the issue; progressives like Chuck Schumer and Elizabeth Warren, as well as some student loan legal experts, have argued that widespread student loan cancellation is in Biden’s power.
Either way, borrowers should not rely on the legislation; even if the cancellation of the student loan does eventually occur, it is best to stay up to date with the payments in the meantime. There are already programs that help federal student loan borrowers get partial forgiveness, and borrowers struggling to make their payments may request a forbearance or a different repayment plan.
Here’s how to prepare
Whether you’re new to the area of student loans or already in advanced repayment, it’s wise to stay on top of how your student loan rates might change. As 2021 continues, more opportunities for cheaper loans or loan cancellation may open up; Keep an eye on the Bankrate student loan news center for the latest trends.