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You Got a Sweet Deal on Student Loans From Biden

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College debtors definitely have a friend in President Biden.  So far, his administration has approved $25 billion in loan forgiveness. In addition, it paused student borrowers’ monthly payment obligations until the end of 2022. More relief is on the way. President Biden announced loan cancelation of up to $20,000 per student borrower.  The Congressional Budget Office predicts the program will cost …

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Income Driven Repayment Plans for Federal Student Loans Create Moral Hazard

Can you believe this?

More and more student borrowers are being forced into income-driven repayment plans (IDRPs) because they can’t pay back their college loans under a standard 10-year repayment schedule. According to an article in Educational Researcher, the proportion of student borrowers in IDRPs increased from 5 percent in 2012 to 20 percent in 2016. Three researchers affiliated …

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