Exciting checks may arrive early next week, However, canceling a student loan can take a long time.

Here is what you need to know.

Student loans

After congressional release of $ 1.9 trillion stimulus package yesterday, stimulus checks, unemployment improvements and other financial relief are on the way. This is good news for millions of Americans affected by the VV-19 epidemic. Canceling a student loan is not the same thing. Senate Majority Leader Chuck Schumer (DNA) has said that large-scale student debt forgiveness is a top policy priority in the first 100 days of Biden administration, but Congress has not set a deadline for student debt cancellation. There is some silver cover: In the new stimulus package, Congress will waive any student loan waiver until December 31, 2025. This includes cancellation of student loans for both private and federal student loans, including FFELP loans. What happens after a student loan waiver? There are 3 possible maps for canceling student loans:

1. Biden cancels student loans by executive order

Sen. Elizabeth Warren (DMA), who has filed a lawsuit against student loan lenders for tax exemption, said this would eliminate the impediment to repealing student loans by President Joe Biden. Other tax exemptions, he said, would increase the chances of canceling student loans. While this tax-free development may be a good financial benefit for student loan borrowers, Biden has nothing to do with canceling student loans. Biden wants a $ 10,000 student loan cancellation, but Congress – a branch of the legislature with constitutional authority – wants to approve a student loan waiver. Biden is likely to cancel student loans, not because of the tax burden on student loans. Biden supports tax-exempt student loans, but his point is not to believe that he has the legal authority to cancel student loans together without additional congressional approval. Biden considers cancellation of student loans by executive order and requires the U.S. Attorney General to review Biden’s legal authority. However, there is no indication that Biden’s position has changed or that there is a good chance that he will continue to be forgiven on the basis of an incentive or an extended student loan.