To adapt Oliver Hardy: Well, here’s another nice mess the federal government has gotten us into.
When Congress passed the CARES Act in March 2020, it placed student loans into “administrative forbearance” until September 2020. That is, there was no penalty for not making student-loan payments. Why? What makes student loans different from other debts? Then, through executive action, the Trump administration has twice extended the forbearance of student-loan repayments — now suspended through January 2021.
By Inauguration Day, student-loan borrowers will have enjoyed ten months of no payments toward their debt. But any private lender knows that once loan payments stop, it is difficult to get borrowers back into the habit of paying.
Read the full piece here at National Review.