Student Loans
The U.S. Department of Education will resume the collection of defaulted federal student loans in May, but lots of people just don't want to pay their loans.
"I didn’t believe it at first. This had to be a hoax. It couldn't be real."
Under the proposed rules, which are due to be finalized this fall, millions of student borrowers would be eligible for debt relief.
The Education Department is seeking to provide a faster path to loan cancellation, and reduce monthly income-based repayments.
WHAT'S HAPPENING
Together with past actions, the administration estimates it will provide relief to 30 million Americans.
The first round of forgiveness under the new plan will clear $1.2 billion in loans.
Loan cancellation was originally set to begin in July under the new SAVE repayment plan, but it’s being accelerated to provide faster relief to borrowers, President Joe Biden said.
The Department of Education is floating a new, narrower plan to relieve student debt.
Student loan payment are resuming this month after a three-year pause.
Borrowers are expected to resume repayments on Oct. 1. A government shutdown could affect that — but not in the way you think.