Millions of borrowers failed to make their first student loan payment as bills started coming due again in October after a three-year hiatus brought on by the coronavirus pandemic and after an attempt to wipe out massive swaths of federally-held debt.
Forty percent of borrowers, some 8.8 million people, had a payment due in October but had failed to make it by the middle of November, the Education Department said on Friday. In total, there were 22 million borrowers who had their payments come due and 60% of them successfully made their payment by the middle of the month.
Payments started coming due on Oct. 1 for millions of federal student loan borrowers, who had not had to work on paying off their debt since early 2020 when the pandemic shut down the world and led then-Education Secretary Betsy DeVos to institute a freeze on payments as the economy quickly went into recession and borrowers struggled to make payments. That freeze was extended eight more times between the Trump and Biden administrations as the pandemic lingered and an attempt to wipe out student loan balances that was struck down by the Supreme Court.
Americans collectively hold $1.6 trillion in federally backed student loan debt, which is a source of serious financial strain to many borrowers. Returning to repayment is especially difficult for low-income borrowers, who are also being hit with higher prices brought on by inflation.... Read More: FOX45