9 Million Student Loan Borrowers Missed First Payment After Pause

(ConservativeJournal.org) – Since student loan payments started up again in October, nearly 9 million borrowers still have not made a payment, despite President Joe Biden’s efforts to provide relief through a three-year payment pause.

According to data from the US Department of Education, 40% of the 21 million borrowers who were supposed to resume payments after Biden’s attempt for a forgiveness plan failed to do so by mid-November. The second half of November saw an even more dismal payment rate, according to records from the US treasury.

This trend follows a pattern initiated in March 2020 by former President Donald Trump, who first implemented student loan payment pauses without interest as a pandemic response. Despite Biden’s subsequent efforts to provide substantial relief, such as the proposal to potentially slash $20,000 from individual debts, the Supreme Court ruled against further debt alleviation, reinforcing that borrowers have an obligation to pay.

Since September, interest on student loans has started accumulated again, following a Supreme Court decision that did not allow the Biden administration to extend the interest-free period. However, Biden has still tried to pass laws and rulings to try to alleviate the debts. In October, his administration announced a forgiveness of $9 billion in student loan debt through existing programs, although this fell significantly short of his initial ambitious plan to erase nearly $500 billion in student debt.

This strategy aimed to ensure that eligible borrowers received the intended relief, as the White House indicated that prior changes were made to the summer ruling for this purpose. Kevin O’Leary, known from the TV show “Shark Tank,” voiced strong opposition to Biden’s attempted plans, labeling them as “un-American” and saying people should manage their own debts without the government.

A significant portion of the 22 million borrowers remain obligated to repay their loans along with accumulated interest, with repayment conditions varying based on when they got a loan.

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