From AEI.org - Student loan payments have been due for six months now—yet no one seems to have told the students. The federal government effectively suspended payments on student loans for four and a half years due to the Covid-19 pandemic, leading many borrowers to lose touch with their loan servicers and disengage from the repayment system. False promises of loan cancellation led to confusion and bitterness. As of October 2024, student loan payments are due again—but it should come as no surprise that less than half of borrowers are making them.
The Education Department hasn’t updated its official student loan repayment statistics since September. But Nelnet, the largest federal student loan servicer, provided me with data on the repayment statuses of the roughly 13 million borrower accounts they handle. The picture is dire.
In February 2020, the last month before the payment suspension took effect, 60 percent of Nelnet’s borrowers were in current repayment on their loans. By February 2025, the share in current repayment had dropped to just 38 percent. Current repayment rates have not risen above 40 percent in the past five months since the payment pause effectively ended.
Let this be a severe lesson in responsibilty for all of them. There is no magic wand to wave and make their debts disappear. They were lied to, plain and simple...
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Have no fear: Jimmy Caarter will rise from the dead and pardon them
ReplyDeleteCancel Student Loan debt just as soon as they can take on our mortgages. Waddya say there special cupcakes? A deal?
ReplyDeleteAy-yup. "Cancel student loans; suspend repayments" in 2024, just long enough to get past the November elections.
ReplyDeleteOnce Trump was re-elected, no further action on the matter was necessary; now it's "Whadda ya mean I'm still in debt?"
And 40% of those loans are for post grad degrees, how'bout them apples.
ReplyDeleteJpaul