Due to the nature of the Democrat-led Senate, many Student Loan experts believe there will be quick and direct action from Biden in order to reduce the $1.7 trillion in student debt.
There are some talks that there will be three different plans of action, the first including student loan cancellation through legislation passed in Congress. Although Biden can sign an executive order to cancel a certain dollar amount of loans, he is expected to now do so solely through a legislative piece. This action will target those that need relief most, including those under the federal Pell Grant, which is one of the biggest loan providers for low-income students.
The next plan is to target the discharging of student loan debt. If this bill passes, both federal and private student loans are allowed to be discharged through bankruptcy, similar to what happens with credit card debt.
Lastly, there is some expected cancellation of student debt through executive order. Possibly amounting around the $5,000-10,000 range per student, and dependent on various external factors, this order would instantly reduce debt for thousands of Americans across the country.
