Here are President Joe Biden’s 5 main options for student loan relief. Here’s what you need to know — and what it means for your student loans.

Student Loans With Biden reportedly planning to extend student loan relief for four months, more than 40 million student loan borrowers can now rejoice. However, what happens next? Here are 5 main options for student loan relief:

Student Loans With Biden reportedly planning to extend student loan relief for four months, more than 40 million student loan borrowers can now rejoice. However, what happens next? Here are 5 main options for student loan relief:

1. Biden extends the student loan payment pause Once Biden extends student loan relief, federal student loan borrowers won’t be required to make any federal student loan payments until after August, 31, 2022. This would be Biden’s fourth extension — and the sixth overall, including President Trump’s two extensions — of student loan relief. In March 2020, Congress passed the Cares Act — the $2.2 trillion stimulus package — that included historic student loan relief.

1. Biden extends the student loan payment pause Once Biden extends student loan relief, federal student loan borrowers won’t be required to make any federal student loan payments until after August, 31, 2022. This would be Biden’s fourth extension — and the sixth overall, including President Trump’s two extensions — of student loan relief. In March 2020, Congress passed the Cares Act — the $2.2 trillion stimulus package — that included historic student loan relief.

2. Biden extends the student loan payment pause and cancels student loans A second option is that Biden extends the student loan payment pause and cancels student loans. This student loan relief is on the wish list of many student loan borrowers. How would it work? For example, following an extension of the student loan payment pause, Biden could announce a plan to enact wide-scale student loan cancellation for all or most student loan borrowers.

3. Biden extends student loan relief, but cancels student loans for certain student loan borrowers only A third option is that Biden extends student loan relief, but he decides to cancel student loans for certain student loan borrowers only. This is similar to the second option, but it would limit the amount of student loan cancellation. Biden has preferred targeted student loan cancellation for specific groups of student loan borrowers.

4. Biden ends the student loan payment pause, but cancels student loans A fourth option is that Biden ends the student loan payment pause after August 31, but he cancels student loans. There has been speculation that Biden will extend the student loan payment pause until after the midterm election on November 8, 2022. Why? Progressive Democrats in Congress have warned Biden that without wide-scale student loan cancellation, Democratic voters won’t vote in the upcoming election or vote for Republicans instead.

5. Biden ends student loan relief and doesn’t cancel student loans A fifth option is that Biden finally ends the student loan payment pause and decides not to enact wide-scale student loan cancellation. This scenario would be most consistent with Biden’s stated intentions. How? While Biden has extended temporary student loan relief multiple times, he has expressed doubt about cancelling student loans for all student loan borrowers without further authorization from Congress.

Biden has called on Congress to cancel up to $10,000 of student loans for borrowers and has said he will sign the legislation. However, the U.S. Senate hasn’t even voted on wide-scale student loan forgiveness, despite multiple legislative proposals.

Biden could stand firm on not cancelling student loans for all student loan borrowers and simply call on Congress to act.

Biden could then to continue to cancel student loans on a targeted basis for select groups of student loan borrowers.