Should the Government Forgive Student Loans

President Biden is rumoured to be considering forgiving some borrowers' federal student loan debt after they stopped making payments on their loans for more than two years.

What fresh alleviation is provided?

More than 45 million Americans owe a combined $1.7 trillion in student loan debt.

Which loans are subject to the suspension?

The only loans that qualify are those owned by the federal government. This comprises Federal Perkins Loans, Federal Family Education Loans, Direct Loans (including PLUS Loans), and PLUS Loans.

Does interest keep building up while the suspension is in effect?

No. During the six-month moratorium, interest won't build up. The interest rate is 0% at the moment.

 How do automatic debit payments work?

Throughout the administrative forbearance period, automatic debit payments are stopped. Any processed auto-debit payments

Borrowers keep making their student loan payments?

The average loan taken out by college graduates in the class of 2020 was roughly $29,900.

Affect the Public Service Loan Forgiveness Program?

Borrowers who work in certain public service positions and make 120 on-time student loan payments are eligible for loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program.

Concerning student loan forgiveness, Biden made a commitment.

The more ambitious demands from some progressives to wipe out all student debt or at least $50,000 per borrower have never received support from Biden.

Forgiveness of student loans is only one aspect of the puzzle.