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January 1, Nearly 9 Million Student Loan Borrowers Missed First Payment Since COVID Pause
Nearly nine million people missed their first student loan payment after the pandemic pause ended this fall, according to the Department of Education. This accounts for about 40% of the 22 million people who had student loan payments due in October. In comparison, less than 26% of borrowers missed their payment in October 2019, before the pandemic pause went into effect.
The payment pause began in March 2020 during the COVID pandemic and ended in October after more than three years. Over 28 million borrowers are supposed to be resuming payments, the department said in a release that took a “first look” at repayment data after the pause.
“Some are confused or overwhelmed about their options. We want to make sure borrowers know that our top priority is to support student loan borrowers as they return to repayment,” the Department of Education stated.
For the next year, the Biden administration has an “on-ramp” program to protect borrowers from the “harshest consequences” of missed payments such as delinquency, default, and mandatory collections. In June, the Supreme Court struck down President Biden’s massive $430 billion student debt relief plan that would have forgiven 40 million people’s loans.
After the court’s decision, Biden said he would “stop at nothing to find other ways to deliver relief to hard-working middle-class families.” In an email to student loan holders, the administration even said the Supreme Court “got it wrong” on student debt.
Despite this, Biden has managed to forgive up to $116 billion in student loans for more than 3.4 million people, the administration said in August. Another move the administration has taken is creating the Saving on a Valuable Education (SAVE) plan, which cuts monthly payments to $0 for millions of low-income borrowers.
On Friday, the Education Department said that more than 5.5 million borrowers are already enrolled in the SAVE Plan, including 2.9 million who do not have to make any payments. Michael Burry, known for being among the first investors to predict the subprime mortgage crisis, called the lower repayment numbers a “red flag.”
Leftist lawmakers and activists have long called for broad student debt relief and have urged the Biden administration to grant it for years. Critics argue that forgiving student loans is unfair to those who sacrificed to pay off their loans, especially since taxpayers ultimately pay for any government-funded debt relief.
Why It Matters (op-ed)
Nearly 9 million Americans missed their first student loan payment after the COVID-19 payment pause ended, revealing the inadequacy of the government’s approach to education financing. Leftist lawmakers continue advocating for broad student debt relief, but this approach fails to address the root cause of the problem.
Forgiving student loans is unfair to those who sacrificed to pay off their debts, and it places the burden on taxpayers. Instead of focusing on debt forgiveness, the Biden administration should prioritize reforming the education system, making it more affordable and accessible to all Americans.
As our loyal readers, we encourage you to share your thoughts and opinions on this issue. Let your voice be heard and join the discussion below.
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Paula Westbrook
December 31, 2023 at 6:16 am
On average, this means each paying taxpayer, was charged an average of $761 per person this last April 15 to pay for somebody else’s person student loans. It’s agregious
Ann
December 31, 2023 at 6:28 am
I wonder if the number of missed/skipped payments includes the payments where the borrower was still waiting for approval of auto withdraw from their ban account? There has to be others who, like me, now have double the amount being taken out of my bank account for the “first payment” actually equaling two payments since the process for auto payment took over two months to approve. NO it isn’t fair or okay to forgive the loans when others spend years repaying them. I am a parent who in my 31st year at my current job would like to retire, but I have $60,000 to pay off to help my child to have a better job and better life. They didn’t qualify for any free government money to go to college, they don’t qualify for forgiveness, myself and my child have to go the old fashioned route and WORK hard to repay the loan while at the same time trying to afford housing, food, etc.
Steven
December 31, 2023 at 6:38 am
Nearly ALL of those that missed the payment made financial commitments they couldn’t have made if the payments had not been suspended. If they had not done so, the payments would not have been missed. In short, suspending the payment actually cost the borrowers MORE than the student loan debt.
CandygramForMongo
December 31, 2023 at 6:42 am
It’s no different than ILLEGAL immigration. All those who went through the proper channels get screwed by those who snuck into America. Keep slapping everyone in the face dimwitcrats!
Denis
December 31, 2023 at 7:40 am
Why should they pay? If Biden gets re-elected, he will forgive the loans.
FedAllTheWayUpAndThenSome
December 31, 2023 at 8:37 am
With all the free money that was given out during Covid, these people bought things they couldn’t afford, instead of paying bills. We saw wages increased, unemployment payments were doubled, food stamps were increased, free insurance was handed out. People were making more money during covid than ever before. And even with all that new money in their pockets, they were told they didn’t have to pay rent, mortgages, student loans, and even utilities. Irresponsible people were encouraged to be even more irresponsible. They splurged on things like new cars with hefty payments, and vacations they never could have taken before. They blew money on things they never would have thought about before covid. They actually went further into debt, instead of using it to get out of debt. Then, when the free money dried up, they were panicked. They didn’t have a clue how they are going to pay all these bills. And the responsible taxpayers are bailing them out again. They’ve learned nothing. They were promised free everything, and voted for those who promised it. All this did was plunge the country, meaning every single responsible taxpaying citizen, deeper into debt. Every high school should be teaching a course in basic economics and financial responsibility. And the DC politicians that sanctioned this madness need to be fired and held accountable.
Bernie C
December 31, 2023 at 8:52 am
There is no confusion whatsoever, borrowers are still hoping for a free lunch. The Biden administration is still trying to find ways to cancel these loans, and the borrowers are hoping something works out soon, so they don’t have to pay.
College age voters love that guy, even if for no other reason than buying their vote by relieving tens of thousands of dollars in loans.
What do you think would happen if he told the professors in the colleges they are teaching for free? It’s should be the same answer for every American who paid for their own kids to go to college and now is being forced to pay for everyone else’s kids—NOT HAPPENING. This is nothing more than a giant power grab. Everyone know that kids have a choice about college and many choose to attend community college because of the lowered expense. To think the rest of Americans must pay for the kids who don’t make wise decisions is a lesson that shouldn’t be taught anywhere.
Willie1955
December 31, 2023 at 8:56 am
This is just another cause of personal responsibility going down the drain. That is one of the biggest reasons for problems in this country. When one shirks their obligations of repaying on a loan or because of some stupid law takes away the idea of self worth. There has been too much not my problem for the last several years. This is not fair to hard working tax payers to foot the bills of college students who major in studies that have no marketable value. Go to a vocational school learn something you can make a decent living on and quit relying on others to give you a life.
Nate
December 31, 2023 at 9:30 am
Time to adhere to the promises made by signature. Begin proceedings to collect or else! Credit scores will plummet, accountability must resume, prices will drop, then everyone just may begin to see that the American dream is still available for those who commit to be responsible for their actions!
Jeff Taylor
December 31, 2023 at 10:03 am
Supreme Court needs to drop the hammer on this Administration, ignoring court orders should come with a penalty, the Administration is encouraging people to stop making payments by not pursuing them,all at the taxpayers expense.
Susan Smith
December 31, 2023 at 10:53 am
Not only did we sacrifice to pay for our children’s education, but we didn’t allow them to enroll in high dollar schools when other equally good schools were available. Also,let’s not forget that many of these kids failed out because school wasn’t as important as partying. We are raising an entire generation of “entitled” who never have to face consequences.f as a parent I bailed out my child every time things were hard i would be told I was enabling and not parenting well. Welcome to the current government.
Buff
December 31, 2023 at 11:03 am
These people took out the loans and they should have to pay them back just like every other American. This government is teaching people not to be responsible for their actions and it’s evident everywhere now. Why should I pay your loan off? That’s just bull!
Colleen
December 31, 2023 at 12:04 pm
If the government is going to forgive people who actually kept getting their education through computer learning then they should have to pay off their loans, learning responsibility. Putting that money aside while being temporarily suspended, but they spent it like drunken sailors. How about paying off mortgages of the people who lost their livelihood not and being able to find work now.
Gerald Scott Ladd
December 31, 2023 at 12:42 pm
Biden would shit too, if he was well fed.
Gerald Scott Ladd
December 31, 2023 at 12:43 pm
Biden would change his diapers too, if they’d give him the ditections.
Gerald Scott Ladd
December 31, 2023 at 12:45 pm
This china run site has a hold on my comments. I thought we were in America!
Muffin
December 31, 2023 at 7:49 pm
This was all caused by Biden’s non researched results. It’s typical of him promising the “impossible”. Some day, he might think before he talks.
Jim
March 23, 2024 at 10:31 am
Boo Hoo! They missed their student loan payments since COVID. How many people missed their house payments, car payments or lost their jobs because of COVID? Suck it up buttercup, you are in the real world now. Why should the rest of U.S. taxpayers have to cover for you? Mommy and Daddy paying all of your bills now isn’t enough? FJB is just buying votes like most politicians do. Go Trump! Go MAGA!