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See Poll Results: Are Student Loan Borrowers Looking For a Handout?
Sharon Nix & Liberty Surveys
January 08, 2024
Yesterday’s Poll:
Are Student Loan Borrowers Looking For a Handout?
Number Of Surveys Completed: 479
Here’s The Scoop
In a startling revelation, the Department of Education announced that nearly nine million individuals failed to make their first student loan payment after the pandemic pause ended this fall. This represents a staggering 40% of the 22 million people who had payments due in October.
To put this into perspective, less than 26% of borrowers missed their payment in October 2019, before the pandemic pause was implemented.
The Biden administration has been scrambling to protect borrowers from the “harshest consequences” of missed payments such as delinquency, default, and mandatory collections. This comes after the Supreme Court struck down Biden’s colossal $430 billion student debt relief plan that would have wiped out the loans of 40 million people.
Despite this setback, Biden has managed to forgive up to $116 billion in student loans for more than 3.4 million people. The administration has also introduced the Saving on a Valuable Education (SAVE) plan, which reduces monthly payments to $0 for millions of low-income borrowers.
Critics argue that forgiving student loans is unfair to those who sacrificed to pay off their loans, especially since taxpayers ultimately foot the bill for any government-funded debt relief. Michael Burry, the investor known for predicting the subprime mortgage crisis, has called the lower repayment numbers a “red flag.”