President Joe Biden (Photo by Joe Raedle/Getty Images)
You paid student loans, but didn’t get any student loan forgiveness.
Here’s what you need to know.
For all the focus on student loan forgiveness, one major constituency of student loan borrowers has been markedly excluded. There’s student loan forgiveness for public servants. There’s student loan forgiveness with a total and permanent disability. There’s student loan forgiveness for borrowers misled by their college or university. There’s student loan forgiveness for borrowers enrolled in an income-driven repayment plan. (Here’s who qualifies for student loan forgiveness right now). President Joe Biden has cancelled $11.5 billion of student loans, which is the most of any president. Some say this student loan forgiveness is life-changing and are pleased with the pace of student loan relief. Others say this student loan forgiveness is underwhelming, with less than 1% of the outstanding $1.7 trillion of student loan debt cancelled. This is even as the U.S. Department of Education said it will cancel $2 billion of student loans within weeks. However, one group of student loan borrowers who few reference as potential candidates for student loan forgiveness are borrowers who have paid their student loans. When is their day in the spotlight? Let’s explore.
Advocates for mass student loan forgiveness such as Senate Majority Leader Chuck Schumer (D-NY) and Sen. Elizabeth Warren (D-MA) have championed the inherent benefits of wide-scale student loan cancellation:
“Does President Biden owe you student loan forgiveness?” may be a question some student loan borrowers are asking. These borrowers, along with progressive members of Congress believe that Biden, as president, has the existing legal authority to forgive student loans for all student loan borrowers by simply signing an executive order. (Here’s how to apply for student loan forgiveness during the Biden administration). Rather than implement wide-scale student loan forgiveness, Biden has has focused on targeted student loan forgiveness for specific groups of borrowers. Biden wants to expand student loan forgiveness, but he has chosen to pursue a measured campaign to help borrowers who should get student loan forgiveness under existing law. (Here’s how to apply for limited student loan forgiveness).
Not everyone supports student loan forgiveness. (These borrowers don’t qualify for student loan forgiveness). Republicans and many Democrats in Congress don’t support mass student loan forgiveness for all or most student loan borrowers. This includes forgiving student loans up to $10,000, $50,000 or any other amount. Opponents of student loan forgiveness cite several objections:
Borrowers who have paid off student loans have been excluded from the prospect of student loan forgiveness. (How to get student loan forgiveness). The immediate objection is that these borrowers already paid their student loans and therefore no longer qualify or need financial help. Some say that any student loan relief should be focused on current student loan borrowers who are struggling financially. However, these student loan borrowers shouldn’t be so easily dismissed. Many student loan borrowers who borrowed money for college or graduate school would tell you they successfully paid off student loans through multiple sacrifices. Like their modern counterparts, they too delayed getting married, starting a family, building a business, or saving for retirement. In some cases, they paid off student loans working two or three jobs, delayed buying a home, or even took an extra mortgage to get out of student loan debt. They paid off their student loans to honor their financial agreement, even if it meant personal sacrifice. These borrowers aren’t necessarily wealthier or socially-advantaged because they could “afford” student loans. (How to get student loan forgiveness even if you don’t work in public service). No borrower is better than the next, but will these student loan borrowers also get financial relief? Student loan forgiveness, like most laws, isn’t retroactive. A student loan borrower who paid off student loans in 1988 may not get compensation, even if they paid off student loans responsibly. However, perhaps a student loan borrower who paid off student loans more recently should be considered for “student loan forgiveness.” Student loan forgiveness up to $50,000 for borrowers could cost $1 trillion. If borrowers who already paid off student loans are included, the amount may be substantially higher. Legislators who are considering mass student loan forgiveness should consider their constituents who also struggled to live the American Dream and paid off their student loans too.
It’s an uphill battle for Congress to pass student loan forgiveness. It’s also challenging to compensate former student loan borrowers who already paid student loans. If you have student loans, and are hoping for student loan forgiveness, turn your attention to the end of student loan relief on January 31, 2022. Now is the time to plan for your next chapter of student loan forgiveness. Know all your options. Here are some popular options to pay off student loans faster:
About Author
