Biden Cancelling Student Debt

President Biden has now ordered the U.S. Department of Education to stop the collection of tax refunds, Social Security, child tax credits and other government payments for those who have student loans in default. This will come as a great financial break for Americans who cannot pay off their student debt however it will not wipe away their student debt.

According to Forbes, the moratorium is now going to be extended from May until November.

To keep things as simple as possible, Americans who are behind on their student loans debt, will not have their government benefits such as tax refunds or the child tax credits taken away from them to pay of their school debts until November now.

According to the most recent data, less than 9 million borrowers are currently in student loan default and student loan delinquency. To be considered in student loan delinquency, an individual will be someone who has not paid his or her student loan debt in more than 90 days and those considered in student loan default will not have paid in more than 270 days.