Great news for student loans.
since becoming president in January. The $2 billion of student loan cancellation is part of Biden’s ongoing plan to focus on targeted student loan cancellation. Unlike wide-scale student loan cancellation — which could cancel student loans for most or all student loan borrowers — targeted student loan cancellation focuses on student loan forgiveness for specific constituencies of student loan borrowers.
Biden has focused student loan forgiveness primarily on three main groups: public servants, student loan borrowers with a total and permanent disability, and student loan borrowers who were misled by their college. Wide-scale student loan cancellation is still a possibility, as the Biden administration evaluates its options. That said, don’t expect any wide-scale student loan cancellation before student loan relief expires January 31, 2022.