Post by the Scribe on Dec 11, 2023 5:05:12 GMT
How Millions of Borrowers Got $127 Billion in Student Loans Canceled
The Biden administration may have been blocked from canceling debt for tens of millions of borrowers by the Supreme Court, but it has still managed to eliminate billions in education debt.
How Millions of Borrowers Got $127 Billion in Student Loans Canceled
The Biden administration may have been blocked from canceling debt for tens of millions of borrowers by the Supreme Court, but it has still managed to eliminate billions in education debt.
www.nytimes.com/2023/11/11/business/student-loans-debt-cancellation.html
By Stacy Cowley
Nov. 11, 2023
When the Supreme Court struck down President Biden’s $400 billion plan to forgive up to $20,000 in federal student loan debt for 43 million borrowers, the prospect of substantive debt relief appeared to vanish.
But then millions of borrowers received surprise notices that their federal student loans were being eliminated through other government relief programs. The Biden administration has wiped out loans totaling $127 billion for 3.6 million borrowers — the biggest wave of student debt cancellation since the government began backing educational loans more than 60 years ago.
The cost of that relief is ultimately borne by taxpayers. The Education Department is the largest lender for Americans who borrow for higher education, and 43 million borrowers currently owe the government $1.6 trillion. The government profits from the interest that borrowers pay, but loan defaults and canceled debts offset that. The system is projected to run at a loss in most years.
thecollegeinvestor.com/39673/does-the-government-profit-off-of-student-loans/
Does The Government Profit Off Of Student Loans?
Depending on who you ask, the government either earned a profit or lost money on federal student loans. Here's h...
Many of the programs that the Biden administration is using have existed for years, sometimes decades, but were notoriously troubled, forcing borrowers to navigate complicated bureaucratic hurdles. By adjusting rules and temporarily waiving some requirements, Education Department officials have accelerated long-delayed relief. Here are the four largest programs being used to eliminate loan debts — and how five borrowers benefited from them.
The Biden administration may have been blocked from canceling debt for tens of millions of borrowers by the Supreme Court, but it has still managed to eliminate billions in education debt.
How Millions of Borrowers Got $127 Billion in Student Loans Canceled
The Biden administration may have been blocked from canceling debt for tens of millions of borrowers by the Supreme Court, but it has still managed to eliminate billions in education debt.
www.nytimes.com/2023/11/11/business/student-loans-debt-cancellation.html
By Stacy Cowley
Nov. 11, 2023
When the Supreme Court struck down President Biden’s $400 billion plan to forgive up to $20,000 in federal student loan debt for 43 million borrowers, the prospect of substantive debt relief appeared to vanish.
But then millions of borrowers received surprise notices that their federal student loans were being eliminated through other government relief programs. The Biden administration has wiped out loans totaling $127 billion for 3.6 million borrowers — the biggest wave of student debt cancellation since the government began backing educational loans more than 60 years ago.
The cost of that relief is ultimately borne by taxpayers. The Education Department is the largest lender for Americans who borrow for higher education, and 43 million borrowers currently owe the government $1.6 trillion. The government profits from the interest that borrowers pay, but loan defaults and canceled debts offset that. The system is projected to run at a loss in most years.
thecollegeinvestor.com/39673/does-the-government-profit-off-of-student-loans/
Does The Government Profit Off Of Student Loans?
Depending on who you ask, the government either earned a profit or lost money on federal student loans. Here's h...
Many of the programs that the Biden administration is using have existed for years, sometimes decades, but were notoriously troubled, forcing borrowers to navigate complicated bureaucratic hurdles. By adjusting rules and temporarily waiving some requirements, Education Department officials have accelerated long-delayed relief. Here are the four largest programs being used to eliminate loan debts — and how five borrowers benefited from them.