According to the New York Times, nearly half of student loan borrowers have not made payments since billing resumed last year.
Student loan repayments were suspended for three years during the pandemic, allowing borrowers to defer payments until billing resumes in 2023. according to Nearly 19 million borrowers had not made their monthly payments as of the end of March, six months after the moratorium ended, according to the Federal Student Aid website. according to To the NYT.
Some borrowers say they can't afford to repay the loans, while others say they've been caught up in a “bureaucratic maze.” Benefit The transition period will extend through September, according to The New York Times. During this period, borrowers who are late with their payments will not be reported as delinquent. (Related: New poll reveals dismal approval rating for Biden's debt forgiveness response, even among borrowers overall)
WASHINGTON, DC – JUNE 30: Student loan relief activists participate in a student loan rally at the U.S. Supreme Court in Washington, DC on June 30, 2023. In a 6-3 decision, the Supreme Court blocked the Biden Administration’s student loan forgiveness program in Biden v. Nebraska. (Photo by Kevin Deitch/Getty Images)
“For a while we're going to have a group of borrowers who look at it and think, 'I paid late, but nothing happened,' and think, 'Why should I pay?'” Scott Buchanan, executive director of the Student Loan Servicing Coalition, told The New York Times. “That was always the risk of the on-ramp. You want to incentivize people to pay. If you let them self-heal, you're not incentivizing them to pay.”
The Biden administration announced a plan to forgive $10,000 in student loans for non-Pell Grant recipients and $20,000 in student loans for Pell Grant recipients in August 2022. The Supreme Court ruled 6-3 in June 2023 to invalidate the plan.
On June 24, two federal judges in Kansas and Missouri blocked parts of the government's “Savings for a Valuable Education” program, which was designed to cut monthly costs. The 10th U.S. Circuit Court of Appeals overturned the Kansas ruling. decision To power on Sunday opportunity Continue with payment reductions.
The Department of Education did not immediately respond to the Daily Caller News Foundation's request for comment.
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