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What Biden’s victory may mean for your student loans and college plans | Personal finance

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Wesley Whistle, senior policy and strategy adviser, higher education at the New America public policy think tank, calls a further suspension “very, very likely.” He says it could come from the Trump administration or the president-elect.

“What I imagine (Biden) would do is extend it for a fixed term or using an automatic stabilizer approach, like once unemployment hits ‘x’,” says Whistle.

A spokesperson for the Education Department declined to say whether President Trump plans to extend the abstention in his final weeks in office. Biden’s transition team also did not answer questions about whether he would use an executive order to renew the forbearance.

Offer a $ 10,000 pardon for COVID assistance

Biden says he plans to write off $ 10,000 in federal student debt as part of COVID-19 relief.

This could completely wipe out the debt of nearly 15 million borrowers who owe $ 10,000 or less, according to federal data. The majority of student loan borrowers (about 67%) have more than $ 10,000 in debt.

Biden also proposed an additional debt forgiveness measure for those earning less than $ 125,000: forgiveness of loans used to pay undergraduate tuition at some schools, including historically black colleges and universities. and other institutions serving minorities.