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Federal student loans have been in automatic forbearance, accruing zero interest for nine months now. During this time, financial advisors have generally advised borrowers who can afford it to keep paying down the principal amount due. But if the free forbearance period is extended once again, does that advice still hold true in light of the possibility of student loan forgiveness?

Figuring out the best way to address the country’s ballooning student debt balance has been a divisive issue for a few years, but a recent poll from Vox and Data for Progress found a majority of voters now support forgiving at least some student loan debt. As such, various versions of debt relief have become a mainstay on Democratic party platforms: President-elect Joe Biden campaigned on the issue and has said he supports forgiving $10,000 worth of federal student loans as part of a COVID-19 relief package. Meanwhile, Senators Chuck Schumer and Elizabeth Warren want the incoming president to wipe out $50,000 worth of federally- and privately-held loans via executive order.

For the 42.3 million people with federal student loans, this could be a once-in-a-lifetime opportunity. Lees verder →