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Student Loan Forgiveness Is Regressive And New Research Says Only Targeted Forgiveness Works

admin by admin
January 17, 2022
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Student Loan Forgiveness Is Regressive And New Research Says Only Targeted Forgiveness Works

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Student loan relief was extended for 90 days, but it’s only temporary student loan relief. Make sure you have a game plan for student loan repayment. Understand all your options. Here are some popular strategies to pay off student loans faster:

Student loan forgiveness and income-driven repayment plans, which should be improved, means that student loan borrowers don’t actually pay student loans according to their student loan balance.

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In contrast, student loan borrowers who are enrolled in an income-driven repayment or student loan forgiveness plan typically can pay a fraction of their federal student loan balance before getting student loan forgiveness.

President Joe Biden has cancelled $12.7 billion of student loan debt. His strategy to date has been based on targeted student loan cancellation, which has helped provide student loan forgiveness to public servants, student loan borrowers with a permanent disability, and student loan borrowers who were misled by their college or university through borrower to defense to repayment.

If there is any student loan forgiveness, it would likely be limited only to federal student loan borrowers and have an income cap. It’s also possible that wide-scale student loan forgiveness could become targeted student loan forgiveness and focus on low-income borrowers, borrowers in student loan default or borrowers in student loan delinquency.

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