I'd like to say this is shocking, but in this economy..
Yup, this is the first due payment since 2020 when a freeze was placed on these loans, and just 60% of borrowers made a payment. Great job, America!
The Education Department emphasized on Friday that a majority of borrowers successfully paid their first monthly payment. About 60 percent of borrowers — some 13.2 million people — who owed a payment in October made the payment by the middle of last month, said the department.
The new data shows, for the first time, that millions of borrowers are availing themselves of the flexibility that the Biden administration has offered borrowers, which officials have dubbed the "on-ramp" to repayment.
Oh, so the lack of payments is by design. I see.
But what kind of "on-ramps" are we talking about?
Oh, no biggie.
- It's just you can't be reported to credit bureaus if you're delinquent on your payments. That is, until next September.
- And you won't have to deal with those aggressive debt collectors either.
- Defaults, also, will not begin until fall 2024.
So essentially, the Biden administration has kicked the can down the road for these borrowers (probably hoping to bail them out in the meantime). I'm sure the borrowers are hoping for this bailout as well, which will likely lead to a good portion of them not paying at all until the time comes. Look for an extension of that program come fall, because y'all know they need the votes.
So great, 45 million Americans owe $1.6 TRILLION in debt and we're just gonna kick the can down the road for these people who still don't want to pay.
That's Bidenomics, folks. Get used to it.
P.S. Now check out our latest video 👇
