Tag: Biden student loan forgiveness

student loan debt, Student Loans

Biden Administration Creates New Path to Help with Student Loan Discharges

Posted on by Admin

The Biden administration has created new pathways for borrowers struggling to pay their federal student loans. These measures are giving cautious optimism to critics who say that financial relief is not available for those struggling with student loan debt.

The Departments of Justice and Education made an announcement regarding a new process that would allow bankruptcy borrowers to discharge their federal student loan debts. These departments stated this move will hopefully reduce what they call “unnecessarily burdensome and time-consuming” investigations.

student loan debt

Federal Government Seeks Alternatives after Biden Student Loan Forgiveness Program Blocked

Posted on by Admin

With President Biden’s student loan forgiveness at an indefinite pause, the federal government is looking for other ways to help student loan borrowers receive relief from their debt. However, many of these changes hinge on the decision of the executive branch.

One reason student loan debt is so difficult to pay down has to do with the interest charged on the balance every month. According to the Education Department, $22 billion in interest was charged in the fiscal year 2019 alone. Keep in mind that no interest has been charged on federal student loans since the pause was issued on interest on these types of loans after the start of the COVID-19 pandemic.