Opinion | Student Loan Forbearance—Forever?

  • 📰 WSJ
  • ⏱ Reading Time:
  • 70 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 31%
  • Publisher: 63%

Education Education Headlines News

Education Education Latest News,Education Education Headlines

From WSJopinion: President Biden gives borrowers more time not to repay. Student loan debt cancellation may be next, writes The Editorial Board.

The pandemic has become an excuse for progressives to impose policies they otherwise couldn’t—from new entitlements to a ban on rental evictions. The latest act of executive hubris came late Friday when President Biden extended student loan forbearance through January.

Congress in March 2020 relieved borrowers from making payments on federal student loans and waived interest accumulation through last September. Like other “temporary” pandemic programs, the student loan reprieve has been repeatedly extended, first by President Trump and then Mr. Biden, even as the labor market has strengthened.

Forbearance was supposed to expire at the end of September, but Education Secretary Miguel Cardona says a four-month extension is necessary to give borrowers “the time they need to plan for a restart.” Pardon? They have the next two months to plan. Most don’t need that. The unemployment rate among bachelor’s degree recipients was 3.1% in July.

Borrowers haven’t had to show they’ve been hurt by the pandemic to receive forbearance, and nearly 90% of the 43 million student borrowers as of March 2021 weren’t making payments. Forbearance is saving borrowers on average $400 per month, which many are using to invest or pay down higher-interest debt.

As a student loan adviser told the Journal last month: “I’m seeing them say, ‘I’m going to take out more loans now and go buy GameStop stock with it because it’s going to get forgiven anyway,’ which always gives me anxiety.” You can see how they might get that idea as the same politicians who promoted more student debt now claim the government has a moral obligation to cancel it.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

opinion If the government can give huge tax cuts to the wealthy where some don't pay anything, then they can give student loan forgiveness to the lower and middle-class.

opinion Every now and then you make sense opinion

opinion Incentivize the borrowing of money. Good idea?

opinion How much corporate tax cut has costed American taxpayers?

opinion If we can spend trillions in Afghanistan for no fucking reason, we can cancel student loan debt. I know doctors with half a million dollars in student loan debt btw that would love to have those loans cancelled so this isn't strictly a socioeconomic class issue either.

opinion Which tax payers?

opinion BREAKING NEWS A person close to the source who chose to speak to us on condition of anonymity says 'The Democrats are proposing mortgage cancelation.'

opinion Cost misused word...economy circular. What appears as a cost frees up earnings for spending closer to home. So long as wealth remains in the DOMESTIC economy there is NO loss. Same with taxes policy move money from billionsires to working poor

opinion good luck

opinion 모든 당위성이 어린 학생이 들어도 간단한 문서화로 그 처리가 대다수 국민의 행복을 말할 때 그게 모두의 선택이 죄죠.

opinion The fact that dumbass politicians won't support it, doesn't mean cancellation is wrong

opinion And!!!!

opinion

opinion The Democratic Party = abdication of personal responsibility = give money away to buy as many votes as possible = the eventual relegation of America to second class status. What a joke.

opinion

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 98. in EDUCATİON

Education Education Latest News, Education Education Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Biden extends payment pause for student loan borrowers through JanuaryThe 42 million Americans with student debt will not have to resume their payments until February, according to an announcement Friday by the White House. Thank goodness . . . Next step, wipe away all student debt. good Why?
Source: CNBC - 🏆 12. / 72 Read more »

Student loan forgiveness has stalled, but Biden is continuing COVID-era payment freezePresident Joe Biden's administration said it will extend the pause on federal student loan payments one last time, until Jan. 31, for a total of almost two years' reprieve for borrowers. Should extend the pause until January 2024 and let the people vote. If you're confident nothing should be done about it, submit yourself to the election.
Source: YahooNews - 🏆 380. / 59 Read more »