August 31 is a very important day for about 43 million Americans. However, there may be a little bit of a silver lining. I have all the details and what you need to know right here in the topic, Yet again, we, we have another very important day rapidly approaching.
If you’ve been reading this topic here for any length of time, you know that there have been a lot of very important announcements lately and some very important dates and deadlines rapidly approaching and passing right on by. Well, yet again, we have another one coming up here and this is August 31. So in this topic, I want to talk about all the details as far as what’s going to be happening on that day and why this is going to be very impactful for like I said, over 40 million people. So let’s get into it and discuss all the details and what you need to know and also what we need to watch for going into this day, because there are likely going to be some pretty big announcements between now and then as well. So let’s get right into it.
I’m here for you each and every day as your one and only daily advocate. Doing all the research and breaking it all down into these short topics which I deliver a few times throughout the day so you can stay posted with what is actually going on during this very busy time. And as we continue to get all these new announcements out of the President, the administration, Congress, all these new bills, packages, proposals, reform, money, benefits, programs, checks, literally so many different things that are going on right now, I want to make sure that you’re taking advantage of as much as you possibly can, as well as staying updated with everything going on.
Let’s jump into it and talk about August 31, why we need to keep this date on our radar and what are the important announcements we need to watch for between now and then that I anticipate will probably be coming out. All right, so here’s what it comes down to.
A few months ago, the President yet again extended out the federal student loan forbearance period, right? So this is the moratorium that’s going on right now. Well, the end of August, august 31 is the end of the day, on that day when the federal student loan moratorium actually expires, right? However, here are a few things that I want to point out for you because there’s some important details about this. Number one, it’s likely going to be extended.
Once again, I’m going to say this much. I would put probably some money on it that this thing will for sure 100% be extended. Once again. The reason I say that is there’s no way that they are going to allow the federal student loan moratorium to expire two months prior to the midterm elections. There’s just no way they’re going to do that, right?
This would impact about 43 million people. And according to the surveys and everything that I’ve been reading about this, the vast majority of those people are not ready to start paying on their federal student loans. Again, I’m going to be real with you. Is anybody ever going to be ready to start paying on their federal student loans again? I mean, are there any people out there who are excited to start paying these back?
Maybe a very small percentage of people, but probably most people are never going to be ready to start paying this back again, right? So I think that’s pretty obvious that as we continue to read through these reports and see all these articles out there saying that 78% of federal student loan borrowers are not ready to pay back, yeah, of course, nobody is ever going to be ready to pay back, right. But again, that’s just what the reports are saying out there. However, I would anticipate going into this date we’re likely going to be seeing an announcement out of the president or somebody with authorities saying, oh yeah, we’re going to extend out again. Kova cases are ticking back up again, which they actually are, and they’re going to use some kind of excuse.
Realistically, it doesn’t matter what they say, it’s just going to be an excuse and we already know that. But again, at the end of the day, this is going to be pretty exciting for about 43 million federal student loan borrowers who have those loans and who probably don’t want to start paying us back anytime soon. So the longer that we can continue to kick this can down the road, ultimately it’s probably going to be a pretty cool thing, right, for all those 43 million people. So I would anticipate, number one, we’re going to get an extension on this. Here’s another announcement that I would certainly want to watch for as well.
Here’s another thing that’s been interesting here. Over the course of the summer, we’ve been hearing a few different things about this, where the president has come out a couple of different times mentioning that they’re going to cancel $10,000 of federal student loan debt for all these millions of borrowers. However, many people in Congress have been saying, biden, stop saying that you’re too early, stop. You got to wait until we’re closer to the midterm elections. So they’ve kind of been quiet on this.
Have you ever noticed as of the last couple of months here, they’ve been pretty quiet about the federal student loan forgiveness and or cancellation? Haven’t really heard a whole lot about it except for the fact they’re still saying, yeah, we’re going to do it. Just hold tight, we’re going to get it done for you. Why are they saying that? They’re trying to draw out the clock here.
They’re trying to get it closer to the midterm elections. And again, this is nothing against Biden. It’s nothing against Democrats. It’s the simple fact of the matter. We know this.
All politicians do it. It doesn’t matter what side of the aisle they’re on. All politicians do stuff like this. They do stuff right before election time because they want to get the attention of the voter, right? They all do this.
So again, this is nothing against any individual party or person. I’m just simply saying this is what they all do. We all recognize this with the midterm elections coming up, we totally understand this is how it’s going to play out. So with that being said, now that we are approaching this and we’re getting closer and closer to that midterm election, I would anticipate we’re going to see a lot more talk out there about $10,000 of federal student loan cancellation. Now, they’ve already been talking about this for a very long time now, but we haven’t heard a whole lot about it as of recently.
I wouldn’t be shocked. Number one, again, they’re going to extend out the federal student loan moratorium for at least probably a few more months. I would anticipate probably until the end of November, something like that, maybe possibly the end of the year. But I’m going to say this much for surely after the midterm elections, 100%, it’s going to be extended out until after the midterm election. That’s why I’m saying possibly the end of November, maybe even the end of the year.
But again, we’ll have to see what happens here going forward. But that’s one thing I’m going to be anticipating next. I’m going to be listening very closely for any type of language or talk about cancelation the $10,000 federal student loan cancellation. Again, that’s going to be another important one because maybe in conjunction with the actual extension of this moratorium, they might come back and say, oh, on top of that, we’re going to cancel out $10,000. Now, again, we’ve been hearing some back and forth on this.
We’ve been hearing the president say he wants to do $10,000. We’ve been hearing from different departments saying, well, we don’t know if he can do that. We don’t know if he can do it through executive order. There’s been a lot of politicians out there who are saying he can do more, he can do $50,000, he can do it through executive order. He can do it right away.
But don’t do it quite yet, it’s too early yet. So again, there’s a lot of different things, a lot of different factors here that are playing out. So that’s why I’m saying when it comes down to the federal student loan for barren’s period and this moratorium that’s going on right here right now, there’s going to be some pretty big announcements here going forward over the next few days and of course the next few weeks here. As we continue to get closer and closer to this date, we’re going to be seeing these announcements coming out, whether it’s all of the following that I just said or maybe it’s just the extension I would anticipate yet again, they’re going to dangle the carrot with the $10,000 of federal student loan cancellation. This is the thing that they’ve been talking about for a very long time now.
So there’s no way that they’re just going to walk away from it out of nowhere. I would not anticipate that. If anything, they’re going to continue talking about it and they’re going to continue to dangle that carrot, the $10,000 carrot that everybody wants. And then of course, we’ll have to see if anything ever happens. Now.
Again. If they can’t get it done before the midterm elections. Then again they’re going to continue to say that they’re going to get it done as quickly as possible and then after the midterm elections. That’s when if they’re either going to do it or they’re not going to do it. They might say.
Well, We can’t do it for all these logistical reasons. For all these other reasons. We can’t do it. There’ll be some great excuses But the fact of the matter is between now and the midterm elections, if they don’t do it, they’re certainly going to continue to throw that out there and make sure that everybody understands that, hey, make sure you’re going out and voting because we got this $10,000 here that we want to wipe off the board for you. And again, this is not any kind of political statements. They all do this. We all know that all politicians pull stuff like this. So I just want you to be aware that this is the kind of talk and some of the discussion that is out there now.
But when it comes down to the end of the month, August 31, that’s what I would anticipate watching for. We’re going to see a lot of talk about this. And again, worst case scenario, all that they do is come out and they say, hey, we’re just going to extend it out. The federal student loan moratorium for another, I don’t know, three months, 90 days, something like this, probably until the end of November would be my anticipation and it’s probably going to have to do something along the lines of COVID cases are spiking again and something along those lines. So that’s what I anticipate going forward.
Either way, this is a big percentage of people, 43 million people according to the statistics out there, encompass about all of this federal student loan, all these loans and all this debt, which by the way, as of right now, there’s about $1.8 trillion of outstanding federal student loan debt in this country. And there’s some lawmakers out there right now who are trying to wipe off all of this off the board, just completely erased the $1.8 trillion of federal student loan debt. Now, I don’t think that’s going to happen. So I’m not going to be here saying that, yes, it’s going to happen and I’m not trying to lead anybody on because I really don’t think that’s going to happen. There’s just no way that’s going to happen.
But again, $10,000 per federal student loan borrower, I wouldn’t be shocked one bit to see that happen. But I think the timing will have to be very perfect on this one if they actually do it in the first place. They’ve been talking about it for a while now and I guess we’ll just have to see what happens. So only time will tell on that one. But of course I’ll keep you posted.