Are 0% interest student loans better than $10K cancellation?

Cancellation is the most popular proposal to address student loan debt, but it isn’t the only one out there. With the interest-free student loan payment pause in its third year, some wonder if 0% interest on student loans is a better answer.

People are also reading… Lodriguez Murray, United Negro College Fund senior vice president for public policy and government affairs, encourages “the administration to go bigger and bolder.” Two plans for 0% interest LOAN ActLast summer, U.S. Sen. Marco Rubio, R-Florida, reintroduced the Leveraging Opportunities for Americans Now Act. This act, first introduced in May 2019, calls for the government to disburse all federal student loans at 0% interest and replaces interest charges with a one-time origination fee.

Low-income borrowers who enter an income-driven repayment plan would benefit most. According to a NerdWallet analysis, a borrower with $27,000 in debt and a starting annual salary of $30,000 would pay nearly $42,000 by the time income-driven repayment forgiveness kicked in. With the Rubio proposal, that borrower may pay about $9,600 less.

This proposal was introduced to help student loan borrowers recover from pandemic-induced financial strain and mounting interest totals that have the potential to exceed the original principal loan balance. The proposal would allow borrowers to refinance at 0% through 2024.

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From debt forgiveness to repayments resuming, here's what you should know about student loan changesOur 6abc data team crunched the numbers and found out that in the tri-state area, 3,150,000 people owe a whopping $112 billion in student loan debt. Then they shouldn’t have signed up for it. It was THEIR choice. So? Pay it. Keep researching 6abc. Look at where that number was before our government started handling student loans in 2008. Tuitions skyrocketed. The chart proves after 2008 tuitions skyrocketed. Why are you ppl ignoring this? How can you ignore this fact. Are you purposely deflecting?
Source: 6abc - 🏆 250. / 63 Read more »