It’s unlikely that refinanced student loans will be forgiven if the Biden administration approves widespread cancellation. Throughout the pandemic, the federal government has implemented piecemeal fixes that have wiped out loans for public servants, military service members, disabled persons, and people who attended sham for-profit colleges. It’s also kept most federal student loan borrowers in forbearance.
None of those benefits have helped borrowers who struggle to pay private student loans. This relief has been limited to federal student loans: This is because the Education Department has the authority* to write off these loans thanks to laws that govern the federal student aid system.
Private loans are made outside of that system. These loans are instead made by banks, credit unions, online lenders (and so on) and are instead controlled by individual student loan promissory notes. Basically, unless Congress passes a law authorizing it, the government can’t make many changes to that private contractual relationship.
Simply put, sweeping student debt relief probably won’t include refinanced loans.
Learn More: Private Student Loan Forgiveness
* The Higher Education Act of 1965 gives the Secretary of Education the power to “enforce, pay, compromise, waive, or release any right” to collect on federal student loans. That power doesn’t extend to private loans.