A new survey asked 1,000 borrowers what they thought of Joe Biden’s student loan plans.
Here’s what you need to know.
The latest student loan debt statistics show that 45 million borrowers collectively owe more than $ 1.6 trillion in student loan debt. A new survey of 1,000 federal student loan borrowers looked at several issues related to student loan making, student loan repayment, and free college, among other things. Here is what they said:
Student loan forgiveness
- Cancel student loan: More than 70% of the respondents “approve” or “tend to be in favor” of various proposals for terminating student loans.
- Student loan forgiveness suggestions: Borrowers were interviewed about various student loan forgiveness proposals, including a $ 10,000 student loan repayment plan, a student loan repayment plan of up to $ 50,000, a college forgiveness plan Student loans for borrowers earning less than $ 125,000 per year and a plan to cancel all federal student loans.
- To cancel a $ 10,000 student loan: Of the four student loan cancellation proposals, respondents preferred Biden’s $ 10,000 student loan cancellation plan due to the Covid-19 pandemic. This plan is the relatively least expensive of the four federal taxpayer plans.
- When borrowers get student loan waiver, they said they would mainly use the extra money to save or invest, pay off debts, or buy a home.
- Terminate student loan through executive order ?: Lawmakers and policy makers continue to debate whether Congress needs to pass student loan cancellation laws or whether the president can cancel student loans through executive action.
- Compensation for student loans that have already been paid off: More than 48% of student loan borrowers believe that anyone who recently paid off student loans should be compensated if Congress or Biden cancels student loans for current student borrowers.
Student loan repayment
- Student loan repayment: After voting for Biden, the majority of respondents made no changes to their student loan repayments or made payments due to student loan relief under the Cares Act (the $ 2.2 trillion stimulus package that temporarily suspended payments on federal student loans) no payments for student loans.
- No payments for student loans: 9.6% of federal student loan borrowers stopped paying for student loans after Biden won the presidential election.
- Smaller Student Loan Payments: 14.4% paid smaller student loans after the election.
- Additional payments for student loans: While federal student loan payments have been optional for most of this year, many borrowers have made additional student loan payments to help pay off student loans faster.
Student loans are due on January 1, 2021
- Student Loan Payments Due: Without an extension, the federal student loan payments will resume at your regular interest rate on January 1, 2021.
- Covid-19 student loan relief: This is because the Covid-19 student loan relief will expire on December 31, 2020.
- Skip student loan payments: 14% of student loan borrowers plan to skip student loan payments starting January 1. Why? They expect Congress or the President to cut student loans.
- Higher Student Loan Payments: 12.7% of student loan borrowers say they will make student loan payments above the minimum payment in order to pay off student loans faster.
- I can’t afford student loan payments: More than 35% of student loan borrowers say they cannot make student loan payments or are unlikely to be able to make student loan payments once the Covid-19 student loan facilitation ends.
- Income-oriented repayment plans: If you’re struggling to make federal student loan payments, contact your student loan administrator to sign up for an income-based repayment plan. If you’re already enrolled, make sure you update your Disposable Income, Family Size, and Residence, which could affect your monthly student loan payment. You can also explore forbearance and procrastination options.
- Biden Income-Based Repayment Plan: 44.9% of student loan borrowers would prefer the new income-based repayment plan that Biden proposed.
Student Loans: Bankruptcy and Free College
- Cancel student loan in bankruptcy: Biden supports a plan to cancel student loans in bankruptcy.
- As a US Senator, Biden did not support the idea of replacing student loans in bankruptcy.
- Register for bankruptcy: Nearly 38% of home student loan borrowers say they would file for bankruptcy to redeem student loans if the practice became more widely available under the Biden administration.
- Free University: More than 82% of student loan borrowers support Biden’s plan to make public colleges and universities toll-free, “strongly” or “assisted” for those whose household incomes are less than $ 125,000.
Pay off student loans
While this is just a survey, there are many ways to pay off student loans. Make sure you know all of your options so that you can save money. Here are 3 smart starting points, all of which have no fees: