Main Topic: Student borrowers considering various strategies to lighten their loan burdens as repayments resume.
Key Points:
1. Some borrowers are jokingly citing scripture or discussing boycotts as ways to address their student loan debt.
2. Experts warn that deliberate nonpayment of student loans can have serious financial consequences, including garnished tax refunds and limited access to future student aid.
3. There are alternative avenues for reducing loan payments, such as forgiveness programs and income-driven repayment plans, that borrowers should explore.
A survey reveals that 62% of student loan borrowers in the US are considering boycotting loan payments due to doubts about affordability, with half of respondents believing a boycott could lead to total debt forgiveness, raising concerns about the risks and consequences of refusing to repay student loans.
Advocacy groups and elected officials are urging the Biden administration to implement student loan forgiveness, even after the Supreme Court struck down Biden's debt cancellation plan, and are pushing for the establishment of a new student loan forgiveness plan under the Higher Education Act.
House Republicans have advanced legislation to overturn President Joe Biden's new student loan repayment program, which lowers monthly payments and caps interest, while Biden officials promote it as a crucial tool to help Americans manage their federal student loan payments.
Hundreds of thousands of borrowers in the US are set to receive at least $6 billion in student loan forgiveness, but a major loan servicer is being accused of violating the terms of the agreement, adding to the ongoing issues faced by borrowers as student loan payments resume.
Democratic lawmakers have requested an investigation by the Education Department into student-loan company MOHELA due to concerns over paperwork delays that may force borrowers eligible for debt relief back into repayment.
Summary: Student loan borrowers have the option to appeal for forgiveness through either the Public Service Loan Forgiveness or the Income-Driven Repayment Forgiveness federal programs.
Starting next month, student loan payments will resume, but those with student debt have the opportunity to take advantage of the Saving on a Valuable Education (SAVE) plan, which can significantly reduce their loan amount and monthly payments.
President Joe Biden has canceled $9 billion in student loan debt, providing relief to 125,000 borrowers, with a focus on those in public service or with low incomes and disabilities.
U.S. President Joe Biden plans to announce an additional $9 billion in student debt relief for 125,000 borrowers, bringing the total approved debt cancellation by the administration to $127 billion for nearly 3.6 million Americans.
Rep. Alexandria Ocasio-Cortez criticized Rep. Mike Lawler and urged him to take responsibility for his party's chaos, stating that if Republicans need help from Democrats, the "line is open."
The resumption of student loan payments in the US raises concerns about the financial vulnerability of borrowers, although the Biden administration's SAVE plan is expected to alleviate some of the burden by offering more generous repayment options. Black borrowers, who already have larger outstanding debts on average, face additional challenges in paying down their loans due to earning disparities in the labor market. The growth of student loan debt has slowed during the payment pause, but it remains to be seen how it will change once the pause ends.