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Don’t Need a Crystal Ball to Predict Federal Student Loan Default Rates to Explode

Don’t Need a Crystal Ball to Predict Federal Student Loan Default Rates to Explode

In March 2020, the U.S. Department of Education allowed 37 million student-loan borrowers to pause their monthly loan payments due to the COVID pandemic. DOE extended the payment moratorium several times, allowing all these college borrowers to skip making payments for two years without accruing interest or penalties. This moratorium gave student debtors much-needed relief … Read more

The Department of Education Is Cooking the Books: Federal Reserve Bank Says $166 Billion in Student Debt is Delinquent

Most Americans have confidence in what the Federal Reserve Bank says about the national economy. I know I do. But when the Federal Reserve Bank of New York reported that $166 billion in student debt is delinquent, it vastly understated the enormity of the student-loan crisis. In its most recent quarterly household debt report, the … Read more

Why Are Borrowers With Less Student Loan Debt More Likely To Default?

(Xavier J. Peg ☠) Just days after the Federal Reserve Bank of New York showed that student loan delinquency rates were once again on the rise, a new Fed report finds it’s student loan borrowers with the lowest levels of debt who typically are the most delinquent. The FRBNY reports that it’s often the people … Read more