In the wake of the Biden administration's decision to lift the freeze on student loan payments this fall, close to 40% of borrowers overlooked their initial repayment, reveals a report by Politico. A close look at the figures from October 2019 shows that 26% of those due to make a payment fell short of doing so by the middle of November the same year.

A more recent snapshot taken in October 2023 reveals that out of the 22 million who were expected to make payments that month, nearly 8.8 million failed to settle their dues by mid-November.

Undersecretary of Education, James Kvaal, acknowledges these difficulties in a blog post published on a recent Friday. He expresses understanding for those who may feel muddled or daunted by their options and affirmed the Department's commitment to assisting loan recipients.

He writes, 'Despite the fact that a majority of borrowers have made their first payment, a significant number haven't been able to yet. Some of them are simply bewildered by the process and need further clarity on their options. It's crucial for them to know that our paramount focus is to provide support as they venture back into the repayment process.'

The Department of Education (ED) has implemented measures aiming at easing this transition. Last June, it announced that should borrowers neglect to pay, they would be neither reported to any credit agencies nor considered as defaulting before September 30, 2024. This leniency policy was brought to light in a blog post shared by the ED.

In the wake of the Biden administration's decision to lift the freeze on student loan payments this fall, close to 40% of borrowers overlooked their initial repayment, reveals a report by Politico. A close look at the figures from October 2019 shows that 26% of those due to make a payment fell short of doing so by the middle of November the same year.
A more recent snapshot taken in October 2023 reveals that out of the 22 million who were expected to make payments that month, nearly 8.8 million failed to settle their dues by mid-November.
Undersecretary of Education, James Kvaal, acknowledges these difficulties in a blog post published on a recent Friday. He expresses understanding for those who may feel muddled or daunted by their options and affirmed the Department's commitment to assisting loan recipients.
He writes, 'Despite the fact that a majority of borrowers have made their first payment, a significant number haven't been able to yet. Some of them are simply bewildered by the process and need further clarity on their options. It's crucial for them to know that our paramount focus is to provide support as they venture back into the repayment process.'
The Department of Education (ED) has implemented measures aiming at easing this transition. Last June, it announced that should borrowers neglect to pay, they would be neither reported to any credit agencies nor considered as defaulting before September 30, 2024. This leniency policy was brought to light in a blog post shared by the ED.

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