February 10, 2022
BU Today recently interviewed Mark Williams, Executive-in-Residence and Master Lecturer in Finance on the possibility of the Biden administration offering student loan forgiveness.
President Biden promised to relieve up to $10,000 in debt per student loan borrower but has yet to fulfill his promise. The COVID pandemic led to a pause on student loan payments, which have now been extended five additional times. While this has prevented spikes in interest rates, many people fear that once this pause ends, there will be an increase in loan defaults. Mark adds that,
However, the concern is once the obligation is required to be paid again, will this cash flow be there? Or will we see an increase in the amount of defaults, which actually impact borrower credit ratings and could have other detrimental impacts on their financial health?
With predictions of student loan debt increasing even more, this excessive financial burden must be alleviated by the government.