Student loan borrowers are uncertain about their repayment futures as only 40% are current on payments, and upcoming relief plans face legal challenges and potential delays.
Student Loan Repayment Uncertainty – Biden’s Relief Plans Face Legal Hurdles as On-Ramp Period Ends
According to Business Insider, student loan borrowers are facing a tough time as the repayment situation remains unclear. Many student loan borrowers are having trouble keeping up with payments, with only 40% current as of January 2024. The temporary “on-ramp” period, which prevents missed payments from hurting credit scores, is ending soon, causing worry among borrowers.
President Biden‘s efforts to help with student loans have included temporary relief and forgiveness plans. However, these plans have faced legal issues. The Supreme Court blocked Biden’s first broad forgiveness plan, and the new plan, expected this fall, may also face legal challenges. This leaves student loan borrowers uncertain about their financial future.
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40% of Student Loan Borrowers Delinquent: Uncertainty Reigns as Repayment Landscape Remains Rocky, with Forgiveness Plans and Credit Scores in Jeopardy (PHOTO: One Wisconsin Now)
Borrowers Delay Payments Amid Uncertainty: Education Department’s New Relief Plan Faces Potential Delays and Legal Issues
Many student loan borrowers are delaying or stopping payments, hoping for more relief. The Education Department’s new relief plan, which could help over 30 million student loan borrowers, is also facing potential delays and legal problems. Borrowers are waiting to see what will happen next with their repayments and relief options.
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