While debates about student loan forgiveness and other topics continue to make headlines, borrowers desperately hoping for financial relief and system reform have nothing better to do than wait to see if President Joe Biden will keep his campaign promise to provide at least $10,000 of student loan forgiveness to every federal and private account. In the meantime, experts recommend that borrowers prepare for any of the potential outcomes now rather than wait for additional updates and news.

In this guide, we provide some common sense tips designed to help you make certain that you can handle whatever happens:

$10,000 to $50,000 Forgiveness

What would you do if you no longer had to pay $10,000 or $50,000 on your student loan? Financial experts estimate that the government would clear approximately $321 billion in total from student loan balances with the $10,000 per borrower plan. If President Biden keeps his word, approximately 11.8 million of 43 million federal and private borrowers, or 31 percent of all student loan holders, would receive a clean slate entirely and account cancelation. He has already made it clear that he's not considering the $50,000 plan, but many Democratic Party and Independent lawmakers have placed pressure on him to clear more than $10,000, which means that $50,000 might not be entirely off the table.

Whether you receive total or partial forgiveness in either amount, it's time for you to consider what you might do without some level of the cost hanging over your head. Make a list of all of your most pressing expenses followed by a second list that outlines your short-term and long-term goals. Although no one is stating you shouldn't use a small amount of the money to indulge in buying something you want rather than something you need with any extra cash you suddenly have on hand, experts recommend focusing more on financial security.

Given the state of the economy and national and world events, they recommend that borrowers first put any extra money toward bills that accrue interest, such as credit cards and other forms of loans. By paying off all loans, you can reduce the risk of falling into even worse debt. Once you've reduced unnecessary interest-related debt, you should consider saving money to help you weather inflation and any of the many potential catastrophes that might happen in the near future that can severely increase the cost of living, such as job loss, domestic societal upheaval, conflict between nations, life-altering or lethal spread of another disease and non-pandemic medical and other normal major life events like a birth, wedding and retirement.

The best way to prepare for this scenario once you have your lists is by reaching out to anyone who can help you craft contingency plans, such as your creditors, a financial adviser or your insurance agent. They can help you choose the best path and create a custom plan for your unique situation and finances.

Extended Pause or No Change

What happens if President Biden extends the pause again or simply allows it to end as planned without offering any additional financial forgiveness or making any extensive reforms to higher education and related lending? Experts agree that these scenarios are entirely possible and even likely given the hot debate about this topic and the many critical arguments against forgiveness by former borrowers who paid off their loans, non-borrower workers, taxpayers and more financially conservative politicians.

If President Biden and the Department of Education extend the pause, then you should still put money aside into an account to create a savings buffer so that you have money at the end of that pause if no additional financial aid becomes available. If no change to the pause occurs and you can't afford the upcoming payments, then you need to contact the DOE using the contact information at StudentAid.gov and your specific student loan servicer about the many current repayment options available to borrowers, including public service forgiveness and lower income-driven payments. They also recommend speaking with a financial adviser who can provide guidance to help you free up cashflow by reducing other expenses.

You also need to prepare mentally for this outcome. Some mental health experts fear that borrowers who haven't paid on their loans for a long time and perhaps don't have the money needed to restart payments might become demotivated, depressed or worse when suddenly faced with their student loan obligation in addition to high bills related to inflation and the current increased cost of living. As a result, they recommend that borrowers take the time to deeply consider what their frame of mind might be in this worst-case scenario and plan accordingly in a variety of ways. For example, you might keep the phone number for a counselor or therapist on hand, pick up a hobby that can alleviate stress or focus on apps, exercise and other techniques that bring calm and mental relief.

Things to Keep in Mind

For those who want and need student loan assistance, forgiveness can't come soon enough. Yet, there are no guarantees that any additional federal or private borrowers will receive partial or total student loan forgiveness. To prevent damage to your finances or even your mental and physical health, it's critical that you form a plan to cope with any potential outcome as quickly as possible.