The Daily Is the Era of Student Loan Forgiveness Officially Over?
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Apr 21, 2025 
Stacy Cowley, a business reporter at The Times specializing in consumer finance, dives into the end of student loan forgiveness. She highlights the shockwaves this policy shift sends through millions of borrowers, with payments resuming after a lengthy pause. Cowley discusses the emotional toll and potential damage to credit scores, and how this reckoning on student debt may reshape public views on higher education funding. The conversation raises urgent questions about the future of student loans and the financial strain Americans now face.
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End of Student Loan Forgiveness Era
- The student loan payment pause ended after nearly five years, forcing millions to resume payments and exposing them to delinquencies and credit damage.
- This shift could lead to record defaults and significant financial hardship for borrowers and the broader economy.
Borrower Struggles with Loan Payments
- A health care worker in Florida struggles with confusing billing after the payment pause ended, facing unaffordable loan repayments despite seeking income-driven plans.
- She experiences long hold times and system errors, illustrating widespread borrower frustrations with the student loan system reboot.
Government Role in Student Loans Origin
- The federal government began backing student loans broadly in the 1960s to expand college access, seeing it as a public good during Cold War competition.
- This program started as a guarantee system to encourage private bank lending but evolved as higher education financing needs grew.