Student Loan Borrowers Expect Debt Forgiveness: According to recent reports from Sallie Mae, around 48% of student loan borrowers are likely to get debt forgiveness in the coming days.
Sallie Mae’s report ‘How America Pays for College Report’ says that many student loan borrowers expect that the US government will forgive their student loans.
However, consumer advisors say not to be careless and to avoid taking loans on the assumption that the government will forgive their debt.
Last summer, when President Joe Biden’s proposal of forgiving up to $20,000 in student loan debt was turned down by the Supreme Court, millions of US student loan borrowers were under deep stress as they did not receive student loan forgiveness.
During the Donald Trump presidency, he wanted to get rid of all of the U.S. Department of Education’s loan relief programs including the Public Service Loan Forgiveness program, which provides benefits to teachers, members of the U.S. military, and public defenders and prosecutors.
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Trump also wanted to cut the department’s budget, and his administration stopped a regulation that aimed at offering loan forgiveness to those students who were deceived by their schools to get their loans canceled.
However, there was no response from the Trump administration on this decision.
Furthermore, the Biden administration’s new plan ‘SAVE’ which provides early forgiveness for many borrowers is currently on hold because it is being challenged in many courts.
Financial experts advise not to depend on loan forgiveness as it could go wrong.
In a statement, the vice president of Sallie Mae, Rick Castellano said, “Borrowing for college makes sense for some families, but it’s critical to have a plan and do so responsibly.”
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