Biden's plan to cancel student debt can apply to billions of dollars in investor-owned loans, but there is a hitch

Contributing sentiments towards policy:

60% : Like in the mortgage market, the U.S. government for decades has been the dominant player in financing student loans.
59% : In addition to debt cancellation, Biden's plan also bolsters existing income-driven repayment plans for many student loans, including by capping monthly payments on undergraduate loans at 5% of a borrower's discretionary income, instead of the existing 10% cap.
58% : The Consumer Financial Protection Bureau, a consumer watchdog, in February for borrowers looking to consolidate student loans.
57% : Private lenders and many refinancing startups like SoFi Technologies Inc., SOFI, -1.57% and Earnest began refinancing student loans roughly a decade ago at lower rates.
53% : Who owns student loans
53% : "The consumer finance companies are going to be all over this," Sacco said, adding that while the Biden debt relief targets only lower-to-middle income households, many will have existing mortgages, credit cards and other consumer debt, in addition to student loans.
50% : Beyond debt cancellation, eligible borrowers also might want to consider the government's consolidation option as a potential cost-saving measure if one of their student loans has a variable rate (all federal student loans taken out by borrowers on or after July 1, 2006 have interest rate).
47% : However, there could be a few potential drawbacks, Yu said, including that outstanding interest would be wrapped into the balance of the new direct loan, offsetting the size of any debt cancellation.
39% : While past student-loan relief programs have been difficult for borrowers to navigate and slow to catch on, the prospect of sweeping debt cancellation could galvanize households.
30% : Finally, borrowers due for debt cancellation under the , or from that the Biden administration said misled students might want to wait for that relief to be finalized before consolidating, Yu said.
29% : The Biden administration's plan to cancel up to $20,000 in student debt isn't limited to borrowers seeking relief on loans the government already owns.

*Our bias meter rating uses data science including sentiment analysis, machine learning and our proprietary algorithm for determining biases in news articles. Bias scores are on a scale of -100% to 100% with higher negative scores being more liberal and higher positive scores being more conservative, and 0% being neutral. The rating is an independent analysis and is not affiliated nor sponsored by the news source or any other organization.