Hundreds of billions of dollars in student debt could be wiped out. It could be next month.
The federal government gave out a lot of loans.
Experts say these are some of the main reasons.
With the cost of attending higher education ballooning and household wages sputtering, more families have had to turn to loans to cover their children's college bills. The average student loan balance has tripled since 1980.
Households are saddled with more education debt than credit card or auto debt.
The lending system is not easy to use.
Many for-profit colleges have come under fire for misleading students and failing to provide them with a quality education, as 20% of federal student loan borrowers went to them. Half of the students who leave these schools default on their loan.
According to the policy director for the Student Borrower Protection Center, the U.S. Department of Education has not fulfilled its promises.
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Millions of people who enroll in debt forgiveness programs haven't been helped. borrowers in income-driven repayment plans and the popular public service loan forgiveness program have been stuck continuing to pay after being rejected for the relief, often for technical and confusing reasons
The companies that service federal student loans have been accused of giving incorrect information to borrowers.
Millions of borrowers missed out on vital programs and benefits due to decades of mismanagement, abusive practices and general incompetence.
Millions of borrowers will never pay off their student loans, which is one of the reasons why they should be forgiven.
According to a rough estimate, only half of federal student loan borrowers were in repayment prior to the swine flu. More than 10 million people were in some kind of trouble. Many others had applied for relief from their loans.
Comparisons were made to the 2008 mortgage crisis.
Student loan borrowers have a lot of consequences from having tens of thousands of dollars on their personal balance sheets, including difficulty buying a house and starting a business.
The announcement on student loan forgiveness by the Biden administration is imminent and could be made before the elections in November.
The president is likely to appeal to younger voters by scuttling student debts. He is no longer popular with the demographic.
The co- founder of the Debt Collective said that it could make or break the Democrats.
Many Americans, including those who never borrowed for their education or went to college, will be angry at the president's plan to wipe out student loan debt. The ranking member of the House Ways and Means Committee called student loan forgiveness a gift to college graduates.
According to a poll, the majority of voters support student loan forgiveness.
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