Under the new administration, Americans can expect to see a number of student loan reforms put in place. If borrowers are interested in lowering their monthly payments, refinancing may be the way to go. If private student loan borrowers qualify for a student loan refinance at a lower rate than they’re currently paying, there are often no downsides to refinancing. However, there are other options for those with student loan debt.
1. Federal student loan forgiveness
While some progressives have been pushing for the administration to forgive $50,000 in outstanding debt by executive order, the president recently indicated that forgiving such a large amount would require congressional action. He has, however, shown a willingness to wipe away as much as $10,000 in federal educational debt for borrowers.
2. Private student loan forgiveness
Private student loan forgiveness is trickier than federal loan forgiveness because the borrower’s obligation is to a private lender. Still, a Democratic congresswoman proposed an amendment to the National Defense Authorization Act last year that would’ve provided up to $10,000 for eligible borrowers to use to repay private loans.
3. Improvements to Public Service Loan Forgiveness
Many borrowers who take jobs that serve the public end up being denied for Public Service Loan Forgiveness. There are various reasons why, including students choosing the wrong repayment plan.
4. Stronger borrower protections
In 2020, the House and Senate passed bipartisan legislation to overturn rules put in place by the Trump Administration that weakened the Borrower Defense to Repayment Program.
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