July 5, 2022

Finance & Economy

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Student Loans Will Be Completely Cancelled Before Student Loan Payments Restart In May

Here’s a shocking new poll: student loan borrowers think their student loans will be cancelled before student loan payments restart on May 1, 2022.

Here’s what you need to know.

Student Loans

A new poll from CNBC shows that student loan borrowers don’t believe their federal student loan payments will restart on May 1. That could spell trouble for at least some student loan borrowers who think temporary student loan relief will continue (which it may not). Here are some highlights of the poll, including what student loan borrowers think will happen next:

  • 29% said student loan payments will resume on May 1, 2022;
  • 26% said President Joe Biden will extend student loan relief again;
  • 28% said some student loans will get student loan forgiveness; and
  • 14% said all student loans will be forgiven

(7 ways to get a lower student loan payment)

Student loan borrowers still expect total student loan cancellation

According to the poll, 14% of respondents think all $1.7 trillion of student loans will be completely forgiven. (Do you qualify for $5 billion of student loan forgiveness?) This is not what student loan borrowers want. Rather, this is the percentage of respondents who think this will happen. Here is what respondents said when asked if there should be wide-scale student loan forgiveness:

  • 69% said Biden should grant some type of student loan forgiveness;
  • 34% said all student loans should be forgiven;
  • 35% said that student loans should be forgiven only those in need; and
  • 27% said no student loans should be forgiven for anyone. 

(Here’s who won’t get student loan forgiveness)

What this means for your student loans

The Biden administration has said several times that federal student loan payments will restart May 1. (How federal student loans will change this year). While that could change, there is no indication that Biden plans to extend student loan relief due to the Covid-19 pandemic for a fourth time. Therefore, you should plan for federal student loan payments to restart on May 1 as planned. In terms of wide-scale student loan forgiveness, there is no clear path to mass student loan cancellation. (That said, Biden has cancelled $15 billion of student loans). Importantly, there is no mainstream plan in Congress or from president that considers complete student loan forgiveness of all private and federal student loans. While Biden can change his mind, Biden has called on Congress to cancel up to $10,000 of student loans for borrowers. To date, however, Congress hasn’t acted. Biden has even said he’s ready to cancel student loans for millions of student loan borrowers, but Congress hasn’t sent him a bill to sign.

Therefore, don’t expect Biden to cancel all your student loan debt by May 1 or in the near-term. (Student loan forgiveness could be the reason that Democrats lose the midterm elections). The economic and political landscapes are constantly in flux, and it’s hard to predict the future. That said, expecting an extension of student loan relief or wide-scale student loan cancellation of all your student loan debt is an unwise exercise. Instead, prepare as if there won’t be wide-scale student loan forgiveness and that student loan payments will restart as planned. So, evaluate all your options for student loan repayment now. Here are some smart places to start:

Student Loans: Related Reading

Here’s who won’t get student loan forgiveness

Do you qualify for $5 billion of student loan forgiveness?

How to get $1.7 billion of student loan forgiveness

7 ways to get a lower student loan payment