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Education Secretary Miguel Cardona said the Education Department “will continue conversations” with the White House regarding widespread loan cancellation. (iStock)
More … than half a million student loan borrowers have qualified for some form of student loan forgiveness since President Joe Biden took office. But so far, the White House has failed to push for the blanket student debt cancellation promised by the president during the election campaign.
However, the Biden administration is still discussing the “broad†cancellation of student loans, Education Secretary Miguel Cardona told CNBC at a press conference. Wednesday town hall.
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“Our conversations are ongoing with the Justice Department and the White House on these issues,” Cardona continued, referring to generalized student loan forgiveness.
With increasing pressure from leading Democratic lawmakers like Senate Majority Leader Chuck SchumerAs well as the progressive voters who put Biden in power, the issue of federal student loan debt cancellation remains a priority in the White House.
It is still unclear whether the Ministry of Education will take action to write off the debt through a biden’s decree, or whether college graduates will need to rely on Democrats and Republicans in Congress to come together to enact student loan forgiveness legislation.
Even if a blanket cancellation of student loans is put in place by the Ministry of Education, it will not benefit all borrowers. Those with higher incomes are unlikely to qualify, and private student loans will not be forgiven.
Keep reading to find out what you can do if you don’t qualify for a student loan discharge, including student loan refinancing. If you decide to refinance, visit Credible for compare interest rates from several private lenders to ensure you get the best possible rate for your situation.
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What to do if you don’t qualify for your student loan waiver
Biden administration canceled $ 9.5 billion in student debt so far, but only a portion of borrowers have been able to benefit from a discount. Here are some ways to manage your college debt if you don’t qualify for student assistance programs like loan forgiveness.
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Refinance your student loans for better terms
Refinancing a private student loan involves taking out a new loan to pay off your current student debt. By refinancing at a lower rate, you may be able to save money on your monthly payments, get out of debt faster and save money on interest over time.
Student loan rates are close to their all-time low, according to Credible data, which makes it a good time to get a better rate on your college debt. However, refinance your federal student loans to a private loan makes you ineligible for federal benefits such as income-based repayment plans, COVID-19 deferral, and debt forgiveness programs like Public Service Loan Discount (PSLF).
But since private loans probably couldn’t be canceled anyway, you have nothing to lose by refinance your private student debt at a lower rate.
Compare student loan rates in the table below and visit Credible to see your estimated rate without affecting your credit score.
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Join an income-based repayment plan
Many federal student loan borrowers feel unprepared for resuming monthly payments when the administrative abstention period ends early next year, according to a recent survey. If you want to reduce your federal student loan payment, consider signing up for an income-based repayment plan (IDR plan).
IDR plans limit your monthly loan payment amount to 10-20% of your gross monthly income, depending on the type of federal loans you have. You can register for free by logging into your account on the Federal Student Aid website.
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Make additional payments on your student loans
There is a simple rule of thumb for borrowing money: the faster you pay off your loans, the more money you will save in interest over time. This same strategy applies to student loan debt.
If you can afford to make additional payments on your student loans, whether you have federal direct loans or private loans, you have the potential to save thousands of dollars over your debt repayment. Use a student loan repayment calculator to see how much you can save on interest by making additional payments.
Also make sure get in touch with a competent loan officer to Credible to eliminate any confusion regarding the consolidation, repayment or forgiveness of student loans.
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Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at moneyexpert@credible.com and your question could be answered by Credible in our Money Expert column.
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