What Are the Disadvantages of Student Loan Forgiveness Plan?

In August, President Biden promised to release the student loan forgiveness plan to cancel borrowers’ student loans up to $20,000.

However, a Federal Appeals court temporarily blocked the program in October following a lawsuit brought by Republican leaders in six states.

You need to know some updates about the student loan forgiveness program.

Can you ask for loan forgiveness? To qualify for the program, your annual income must be less than $125,000 (individual) or $250,000 (households).

What are the disadvantages of forgiving student debt? It may seem unfair to those who have paid off their loans or have no loans.

After all, loans are made by personal choice, and borrowers must pay for them.

Why we should not forgive student loans? It’s unfair to people who choose not to attend college and have paid off their debt.

What happens if you refuse to pay student debt? If you refuse to repay, your loan may eventually go into default.

Does having a lot of student loans hurt your credit? Yes, student loans can potentially lower your credit score in the long term.

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Designed by Alexander Rabu

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