Waiting for Student Loan Forgiveness? Here's What to Do in the Meantime

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Waiting for Student Loan Forgiveness? Here's What to Do in the Meantime
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Student loan forgiveness could be coming. These are the steps borrowers should and shouldn’t take before there’s more news.

Currently, there are pending reports from the U.S. Department of Education and the Justice Department on whether the president has the legal authority to implement loan forgiveness through executive action. It's still unclear when the findings will be published.

If the White House opts to leave student loan forgiveness to legislators, Democrats may take action before the mid-term elections, experts say.At the moment, the main point of contention among student loan forgiveness proponents is over how much debt should be scrapped: $10,000 or $50,000? Canceling $50,000 for all borrowers, on the other hand, would shrink the country's outstanding student loan debt balance to $700 billion, from $1.7 trillion. Meanwhile, the debt for 80% of federal student loan borrowers, or 36 million people, would be gone entirely.

Since $10,000 in student loan forgiveness is the proposal most likely to turn into reality, Betsy Mayotte, president of, a nonprofit, said she sees nothing wrong with people who owe under that amount redirecting their usual payments to savings until we hear more about forgiveness.

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