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Biden announces $5 billion in student loan forgiveness. Here’s what to do if you don’t qualify.

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Piggy bank with Debt Forgiveness graduation cap on cash
You still have options to consider — even if you don’t qualify for the latest round of student loan forgiveness. 

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In a move aimed at addressing the long-standing issues plaguing the U.S. student loan system, the Biden administration announced Friday that it approved an additional $4.9 billion in student loan debt relief for 73,600 borrowers. This announcement, which brings the total loan forgiveness approved by the administration to $136.6 billion for more than 3.7 million Americans, reflects the ongoing efforts to provide relief to student loan borrowers.

The discharges are the result of fixes to income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF). According to U.S. Secretary of Education Miguel Cardona, the nearly $5 billion in additional debt relief will benefit teachers, social workers and other public servants who have earned PSLF. It will also assist borrowers qualifying for income-driven repayment forgiveness due to the accurate accounting of their payments, the administration says.

But while the new round of student loan forgiveness will provide welcome relief to tens of thousands of borrowers, not everyone will qualify. So what can you do if you don’t qualify for this round of student loan forgiveness but still need relief from your student loan payments? The good news is that you have options to consider. 

Find out more about how student loan refinancing could help you here.

What to do if you don’t qualify for student loan forgiveness

The debt relief announced today by the Biden-Harris Administration is categorized as follows:

  • $1.7 billion for 29,700 borrowers through administrative adjustments to IDR payment counts: These adjustments bring borrowers closer to forgiveness and address concerns regarding the misuse of forbearance by loan servicers. 
  • $3.2 billion for 43,900 borrowers through PSLF: This includes borrowers benefiting from the limited PSLF waiver and regulatory improvements made to the program by the Administration. 

Learn more about the top student loan refinancing rates you could qualify for

Alternative student loan relief options to consider

While the latest round of student loan relief is a significant step forward, unfortunately, not all borrowers may qualify for this type of debt relief. If you find yourself ineligible for this new student loan forgiveness, there are alternatives to consider, such as private student loan refinancing.

Private student loan refinancing involves replacing existing student loans with a new loan from a private lender. This new loan often comes with a lower interest rate, providing borrowers with potential long-term savings. Refinancing also allows for the consolidation of multiple loans into a single, more manageable monthly payment, simplifying budgeting and financial planning. 

It’s important to understand, though, that federal student loans offer unique protections to borrowers, so refinancing your federal student loans with private student loans may not make the most sense, even if your rate is lower. So before you make any decisions, just be sure to weigh the potential benefits of refinancing against the possible downsides of losing the protections offered to you by your federal loans.   

Why it can make sense to refinance your private student loans

There are a few reasons why you may want to consider refinancing your student loans, including: 

  • Lower interest rates: Refinancing allows borrowers to secure a lower interest rate than what they currently have on their student loans. A lower interest rate can lead to substantial long-term savings.
  • Simplified repayment: Refinancing provides an opportunity to consolidate multiple loans into a single, more manageable monthly payment. This simplification can make budgeting and financial planning easier.
  • Flexible terms: Borrowers have the flexibility to choose new loan terms that better suit their financial situation. This could include extending the repayment period for lower monthly payments or opting for a shorter term to pay off the loan faster.
  • Improved credit score: Successfully refinancing student loans can positively impact credit scores. Timely payments on the new loan can also contribute to a healthier credit profile.
  • Release of co-signers: If you initially had a co-signer on your student loans, refinancing offers the possibility of releasing them from their obligations, provided you meet the lender’s requirements.

The bottom line

The Biden administration’s commitment to student loan forgiveness is clear in the latest announcement of substantial debt relief. However, for those who don’t qualify for forgiveness, exploring alternative options, like private student loan refinancing, can provide financial relief and forge a pathway to more manageable repayment.



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NASA simulation shows what it’s like to fly into black hole’s “point of no return”

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A new “immersive visualization” will allow users to experience the plunging into a black hole and falling beyond the “point of no return” within the phenomenon, the NASA said in a news release

The visualization, produced on a NASA supercomputer, allows users to experience flight towards a supermassive black hole. The simulation then orbits the black hole and crosses the event horizon, also called the “point of no return.” The visualization pairs the immersive graphics with details about the physics of such an event. 

The visualizations, available on YouTube, can be viewed as explainer videos or as 360-degree videos that allow the viewer to put themselves at the center of it all. 

“People often ask about this, and simulating these difficult-to-imagine processes helps me connect the mathematics of relativity to actual consequences in the real universe,” said Jeremy Schnittman, the NASA astrophysicist who created the visualizations, in the news release. “So I simulated two different scenarios, one where a camera — a stand-in for a daring astronaut — just misses the event horizon and slingshots back out, and one where it crosses the boundary, sealing its fate.”


360 Video: NASA Simulation Shows a Flight Around a Black Hole by
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The black hole used in the visualizations is 4.3 million times the mass of the solar system’s sun. That’s equivalent to the black hole inside our own galaxy, NASA said. The simulated black hole’s event horizon is about 16 million miles wide, and viewers will see a large flat cloud of hot gas and glowing structures called photon rings. The simulated camera moves at close to the speed of light, amplifying the glow from those structures and making them appear even brighter and whiter even as they become distorted to the viewer. 

Schnittman told NASA that it was important to have the simulation focus on a supermassive black hole, since that would have the most impact. 

“If you have the choice, you want to fall into a supermassive black hole,” said Schnittman. “Stellar-mass black holes, which contain up to about 30 solar masses, possess much smaller event horizons and stronger tidal forces, which can rip apart approaching objects before they get to the horizon.”



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Steward Health Care files for Chapter 11 bankruptcy

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Steward Health Care files for Chapter 11 bankruptcy – CBS News


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One of the United States’ largest private-for-profit hospital chains, Steward Health Care, filed for bankruptcy Monday. The company owns dozens of community hospitals across eight states.

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Building collapse in South Africa sparks complex rescue operation with dozens of workers missing

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Cape Town, South Africa — Rescue teams trying to find dozens of construction workers missing since a multi-story apartment complex collapsed in a coastal city in South Africa have made contact with 11 people buried alive beneath the mangled wreckage, authorities said Tuesday.

One man called his wife from underneath the rubble of the five-story building that had been under construction when it collapsed Monday, the head of the rescue operation said. That enabled emergency responders to locate the man, although he was still trapped and hadn’t yet been brought out.

Six workers have been confirmed dead and there are fears that the death count could rise sharply. There was no news on 37 other people unaccounted for amid the huge slabs of concrete and metal scaffolding that came crashing down when the building collapsed in the city of George, about 250 miles east of Cape Town.

A drone view of the scene of a building collapse where several construction workers are thought to be trapped in George
A drone view of the scene of a building collapse where several construction workers are thought to be trapped in George, South Africa, May 7, 2024.

Shafiek Tassiem/REUTERS


Twenty-one other workers were rescued from the site and taken to various hospitals, with at least 11 of them suffering severe injuries, the George municipality said.

Colin Deiner, head of the provincial Western Cape disaster management services, said the search-and-rescue operation would likely take at least three days.

“We are going to give it the absolute maximum time to see how many people we can rescue,” Deiner said at a press conference. “It is very, very difficult if you are working with concrete breakers and drillers close to people.”

Deiner said it would take most of Tuesday to rescue the 11 workers that rescue teams were in contact with, some of whom had limbs trapped under concrete and couldn’t move. Four of the workers are in what was the basement of the building, Deiner said.

“Our big concern is entrapment for many hours, when a person’s body parts are compressed,” Deiner said. “So, you need to get medical help to them. We got our medics in as soon as we possibly could.”

Deiner said it was possible that there were more survivors deeper in the wreckage and a process of removing layers of concrete would begin after the 11 located workers were taken out.

More than 100 emergency services and other personnel worked through the night, using sniffer dogs to try to locate workers. Large cranes and other heavy lifting equipment were brought in to help with the rescue effort and tall spotlights were erected to allow search-and-rescue personnel to work in the dark.

Rescuers work to rescue construction workers trapped under a building that collapsed in George
A rescue worker removes rubble from the site where construction workers are trapped under a building that collapsed in George, South Africa, May 7, 2024.

Esa Alexander/REUTERS


Deiner said a critical part of the rescue operation came when they ordered everyone to remain quiet and shut off machinery so they could listen for any survivors. That’s when they located the 11 workers, he said.

“We were actually hearing people through the rubble,” he said.

Several local hospitals were making space in their trauma units in anticipation that more construction workers might be brought out alive. More than 50 emergency responders had also been brought in overnight from other towns and cities to help, including a specialized team that deals with rescue operations in collapsed structures.

Family and friends of the workers had gathered at the nearby municipal offices and were being supported by social workers, the George municipality said.

Authorities were starting investigations into what caused the tragedy, and a criminal case was opened by police, but there was no immediate information on why the building suddenly collapsed. CCTV footage from a nearby home showed the concrete structure and metal scaffolding collapsing at 2.09 p.m. Monday, causing a plume of dust to rise over the neighborhood.

Rescuers work to rescue construction workers trapped under a building that collapsed in George
A family member of one of the construction workers reacts near the site where construction workers are trapped under a building that collapsed in George, South Africa, May 7, 2024.

Esa Alexander/REUTERS


People came streaming out of other buildings after the collapse, with some of them screaming and shouting.

Alan Winde, the Premier of the Western Cape province, said there would be investigations by both the provincial government and the police.

Authorities declined to give out any information on the construction company involved but said that under city law the private company’s engineers were responsible for the safety of the building site until its completion, when it would be handed over to the city to check and clear.

Winde said the priority was the rescue effort and investigations would unfold after that.

“All the necessary support has been offered to emergency personnel to expedite their response. At the moment, officials are focused on saving lives. This is our top priority at this stage,” Winde said.

The national government was being briefed on the rescue operation, Winde said.

South African President Cyril Ramaphosa released a statement offering his condolences to families of the victims and also called for investigations into the cause of the collapse.



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