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On August 25, 2022 Here is What You Need to Know About Biden’s Student Loan Forgiveness Plan

Nothing.

I don’t care who the political administration in office is. When big student loan announcements are made, like yesterday’s, it is more of a press release than a plan you can count on.

I did not see anything in the release that you should count on or plan on until the details are released, and it finally goes into effect.

Think about it like this, all we know now is we just got a jigsaw puzzle. We have no idea yet how to put the pieces together.

As the announcement said, “The proposed regulations will be published in the coming days on the Federal Register and the public is invited to comment on the draft rule for 30 days.”

I was interviewed on Fox News last night about this announcement. Here is what I shared. Congratulations to people who will eliminate their student loan debt with one-time forgiveness of $10,000.

However, these changes are more tweaks to a fundamentally broken system for everyone else. Restoring all student loans as another debt eligible for discharge in bankruptcy based on an individual’s situation would have made the most sense.

The announcement doesn’t do anything for people with private student loans or spousal consolidation loans, and I have not seen anything yet where it would include Parent PLUS loans.

The stance you should take today is to be optimistic but not excited. Let’s wait for the details and see how student loan servicers will handle this.

And for the record, I’m not a contrarian about this, just a debt expert that has watched this mess for the past few decades.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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