June 26, 2024

Biden Cancels 10% of Student Debt

Author: Mary S., Prepory college admissions coach and Vanderbilt graduate

In the recent weeks, President Biden has canceled 10% of all student debt in the U.S. This is reportedly the first step in what will be a piecemeal approach to student loan forgiveness.

Why is student loan debt being forgiven?

Biden’s administration is tackling the student debt accrued at schools accused of widespread misconduct. However, the aim of The Biden-Harris Administration’s Student Debt Relief Plan is to make higher education more financially accessible for millions of Americans. Prior to this plan, Americans collectively owed over $1.6 trillion in student loans, according to Federal Student Aid.

What does this mean for future loan borrowers?

The third and final part of the Student Loan Debt Relief Plan looks forward to the future of student loans, but mostly in the context of current borrowers. However, if the Biden-Harris Administration continues with their relief plan, it is likely that the future could hold big changes for the landscape of borrowing student loans.

What does this mean for you, a prospective student?

This news might bring hope for the future of student loans, but it is important to remember that these are very new changes. While the current debt forgiveness plan offers relief, it is not guaranteed that this trend will continue in the coming years. Like always, it is essential to explore all available options for funding higher education. Before considering student loans, you should look into:

  • Scholarships: These are small or large financial awards given to students based on various criteria such as merit, financial need, or group affiliation. Unlike loans, scholarships do not need to be repaid! Some scholarships are offered through universities while others may come from outside sources.
  • Grants: Similar to scholarships, grants do not need to be repaid. They are most often provided on the basis of financial need through the government or other private organizations. The Pell Grant is the most well-known grant and every student who completes their FAFSA is considered for it!
  • Work-study: Work-study programs offer part-time employment opportunities to students, allowing them to earn money to help pay for college expenses. These jobs are often on-campus, which means employers are more willing to work between class schedules.

Our forecast: 💡💰

As more loan forgiveness measures develop, it’s important for students and families to stay informed about these policy changes and their implications. While the promise of debt relief is encouraging, exploring debt-free education options should remain a priority.

Learn more about Mary

Mary holds a bachelor’s degree from Vanderbilt University, where she attended as a Questbridge Scholar and was the first minor ever to receive a CDA (Child Development Associate) at Vanderbilt. Prior to Prepory, she was a member of Dore For a Day, an organization that provides campus tours to prospective students and founded a volunteer program for high school students to assist younger students with their homework.

Learn more about Mary

Mary holds a bachelor’s degree from Vanderbilt University, where she attended as a Questbridge Scholar and was the first minor ever to receive a CDA (Child Development Associate) at Vanderbilt. Prior to Prepory, she was a member of Dore For a Day, an organization that provides campus tours to prospective students and founded a volunteer program for high school students to assist younger students with their homework.

Things You Should Be Doing The Summer Before Junior Year

While there may be more on an incoming junior’s plate, it’s a great time to accomplish things that will help building a better application. These items are exceptionally important and time-sensitive: College list, SAT prep, extracurricular involvement, getting a summer job or internship, and touring colleges.

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Please note that a parent or guardian must be on the consultation for high school students.