Student loans: Looming payments put spotlight on ‘real danger’ for borrowers
Adam Barnes and Lexi Lonas
July 10, 2023
Americans with student loans could see thousands of dollars in interest added to their tabs as part of President Biden’s backup relief proposal.
The Biden administration is attempting to use a proposed aid program to help millions of student debt holders handle the dual blow of payments resuming in October and the Supreme Court striking down a sweeping debt forgiveness plan.
Biden’s “on-ramp” repayment plan allows borrowers in financial distress to delay payments from Oct. 2023 to Sept. 2024 without the threat of default or credit score decline.
But unlike the current pause on student loans, interest will still accrue on those loans and give borrowers a steeper hill to climb when they begin payments again.
