Will Biden Forgive Student Loans Amid Inflation?
This isn’t a political blog and never will be. I want to talk about business, personal finance, and everything around money. Unfortunately, student debt is part of the mix. Whatever side of the aisle you’re on, you can agree that student loans are a burden. To answer the title question, will President Biden forgive student loans? Probably not, but there are good things happening for borrowers.
Federal student loans are set to resume May 1st. With midterms ramping up, people are going to call upon the president to push back payments again.
It’s crazy to think for 2 years, borrowers were not required to make monthly payments on their loans. The shock of paying a couple of hundred dollars more a month–after 2 years–is going to take a toll on the economy.
Inflation is causing strain on households and the Russian-Ukraine conflict isn’t making it easier. Does it make sense to require the average person to start making payments again? It’s definitely a touchy subject.
Student Loan Relief
Biden has forgiven some debt for students who were victims of unethical education business practices. It’s a big step towards relief from student debt.
Yes, I took out loans to go to school, and it’s my responsibility to pay. I’ve done all the right things to put myself in a better financial position now to make up for my naive 17-year-old brain. Yet, I often wonder what a few thousand dollars would feel like off my balance. It sure would help ease the pain. It’s especially true for others who debate on filling their gas tank—or deciding to buy off-brand cereal.
My problems are trivial compared to others, but there are millions of people getting chewed up by student debt every month.
How to Prepare for Repayment
Well, forbearance could potentially be pushed back—again. The odds of forgiving any form of widespread student debt are slim, but there are logical steps you can take to ease back into repayment.
- Situation changed – Let them know your financial state
- Pay early – The interest rate is still at 0%. By paying into your principle, you’ll be able to get your balance down further
- Pay off a group – If your federal loans were disbursed by group, pay off one group at a time to lower your overall monthly payment
- Evaluate assistance programs – there are various programs that help you pay federal loans back. Look into the ones that are applicable to your situation
- Talk to a financial professional – If you need more help on allocating your monthly budget to offset the returning payment
I’m looking forward to seeing the assistance programs that roll out as a result of the current economy. I’ve been hesitant about sinking more money into my student loans and my stock portfolio until more news comes out about relief. Unless Biden forgives student loans.
For now, I am stacking cash, paying off debt, and researching my next move.