As announced by the U.S. Department of Education April 6th:
“An extension of the pause on student loan repayment, interest, and collections has been made through August 31, 2022. This is done to allow for the economy to continue to improve and COVID cases continue to decline. President Biden has made clear the continuing need to respond to the pandemic and its economic consequences, as well as to allow for the responsible phase-down of pandemic relief.”
The promise of canceling debt does not look promising to me. The issue being these loans were flawed from the beginning. One change occurring is the Department of Education appears to be promising to make people whole again.
“The extension will provide additional time for borrowers to plan for the resumption of payments. This will reduce the risk of delinquency and defaults after restart. The Department will also continue to assess the financial impacts of the pandemic on student loan borrowers and to prepare to transition borrowers smoothly back into repayment. This includes allowing all borrowers with paused loans to receive a “fresh start” on repayment by eliminating the impact of delinquency and default and allowing them to reenter repayment in good standing. “
I am not sure what this “eliminating the impact of delinquency and default and allowing them to reenter repayment in good standing” means. Delinquency and default how far back? Some of these loans are decades old. The amounts or penalties in delinquency are tens of thousands dollars.
It doe not appear as if there will be forgiveness as promised.
A handy guide on student debt cancellation (SDC) to rebut the naysayers of Forgiving Student Loan Debt – The American Prospect