The US student loan freeze saved borrowers nearly $200 billion
An estimated $195 billion worth of US student loan payments has been waived since the federal government enacted a freeze in March 2020 in response to the coronavirus pandemic.
The Federal Reserve Bank of New York released a study today (March 23) that shows some 37 million borrowers have not been required to make payments thanks to this freeze, and they’re likely to struggle with loan repayments once they resume. US president Joe Biden is currently facing pressure from fellow Democrats to extend the pause, which is set to expire in May.
The $195 billion in waived payments is still a drop in the bucket of total student loan debt in the US, which is around $1.6 trillion.
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