the wake of numerous legal challenges as the years-long pause on loan repayment is set to expire in December.last week pulled the relief application offline after millions of borrowers had already signed up.
If the program took effect, it would cancel up to $20,000 in student debt for Pell Grant recipients and up to $10,000 for individual borrowers who make under $125,000 per year.What they're saying: " Unless the [Education Department] is allowed to provide debt relief, we anticipate there could be an historically large increase in the amount of federal student loan delinquency and defaults as a result of the COVID-19 pandemic," James Kvaal, the department's under secretary, said in the filing.
"This could result in one of the harms that the one-time student loan debt relief program was intended to avoid," Kvaal added. The people most at risk of defaulting are "the approximately 18 million borrowers eligible for one-time debt relief who would have their federal student loans discharged in their entirety under the program," he added.
Extending the time for paying would be better option.
I guess it's simply too much to ask people who signed the papers and spent the money to pay back what they owe? Forgiveness without addressing the root problem of total college costs is evil. Make colleges co-sign student loans!!!!
Wait wut? If we don’t forgive everybody a few might not pay? Shock horror.
I remember this scene from 'Blazing Saddles', at gunpoint.
Well....10k is not gonna solve that problem lol
Same can be said about credit card debts with interest as high as 40%. Americans are furthering themselves in debt. What about relief for them?
Sucks for the colleges ..