Has student loan abolition spurred the economy even without widespread student loan forgiveness?

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Has canceled student loan already boosted the economy even without widespread student loan forgiveness?

Here’s what you need to know.

Student loans

President Joe Biden extended student loan exemption for the second time this year… With this latest six-month extension through January 31, 2022, student loan borrowers will receive the following:

  • No mandatory federal student loan payments;
  • 0% interest on federal student loans; and
  • No default student loan collection.

As a result of the continuous student loan exemption from March 2020, federal student loan borrowers will get over $ 110 billion in student loan cancellation… Why? With no mandatory payments on student loans and no new interest charged, student loan borrowers will save $ 5 billion every month, according to the US Department of Education. Cancellation of this student loan is in addition to $ 3 billion student loans that Biden has canceled since he became president… It also differs from large-scale student loan cancellation, a strategy that can write off the student loan down payment instead of temporarily suspending the student loan. Through the student loan exemption, federal student loan borrowers will also receive “credit” for student loan forgiveness on both income-based repayment plans and government service loan forgiveness – even if they did not repay any federal loans. payments on student loans during the Covid-19 pandemic… Will Congress or Biden accept large-scale student loan forgiveness?


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