It’s a question millions of Americans would love the chance to ask: What should I do after my student loans are canceled?
The Biden administration has already given more than 450,000 borrowers reason to think about that, after forgiving the debt for certain disabled borrowers and others who attended fraudulent colleges.
More than 40 million people, of course, are still saddled with the loans, but there are signs that more relief could be on the way.
The U.S. Department of Education has announced it will be making a number of changes to broaden the reach of the public service loan forgiveness program, which excuses the debt of those who’ve worked for the government or nonprofits for a decade.
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And President Joe Biden has said he supports erasing at least $10,000 for all borrowers, while top Democrats, including Sen. Elizabeth Warren, D-Mass., and Sen. Majority Leader Chuck Schumer, D-N.Y., continue to pressure the president to wipe out $50,000 for all. Those proposals would leave between a third and more than 80% of borrowers debt-free.
Getting your student loans forgiven will likely be a turning point in your financial life.
The typical bill is around $400 a month, and research finds the payments make it harder for borrowers to start businesses, save for retirement and purchase a house.
