Student Debt Relief: What to Expect in 2023 and Beyond
Student debt has become a significant burden for millions of Americans, with the total amount of student loan debt now exceeding $1.7 trillion. This debt can make it difficult for borrowers to afford necessities like housing and food, and it can also delay or derail significant life milestones like buying a home or starting a family.
In recent years, there has been a growing movement to provide student debt relief to borrowers. There are several proposals for how to do this, ranging from canceling all student loan debt to delivering more targeted relief to borrowers struggling to make payments.
What to Expect in 2023
In 2023, the Biden administration will likely take some action on student debt relief. The administration has already extended the student loan repayment pause several times, and the delay may be opened again in 2023. The administration may also announce targeted student debt relief, such as forgiving up to $10,000 in student loan debt per borrower.
However, it is essential to note that the Biden administration does not have the authority to cancel all student loan debt without congressional approval. If the administration wants to pursue more ambitious student debt relief measures, it must work with Congress to pass legislation.
What to Do if You Have Student Debt
If you have student debt, there are a few things you can do to manage your debt and prepare for the possibility of student debt relief:
- Make regular payments on your loans, even if they are small. This will help you to avoid default and improve your credit score.
- Consider enrolling in an income-driven repayment plan. These plans cap your monthly payments at a percentage of your discretionary income, making your loans more affordable.
- Explore student loan consolidation or refinancing. These options can lower your monthly payments or interest rates.
- Stay informed about the latest developments on student debt relief. You can do this by following the news and signing up for email updates from organizations like the National Consumer Law Center and the Student Loan Borrower Assistance Project.
Student debt relief is a complex issue, and there is no easy answer. However, the Biden administration has signaled that it is committed to taking action on student debt relief in 2023. If you have student debt, it is essential to stay informed about the latest developments and to take steps to manage your debt.