We find today that the nation is in an interesting position, in which government-guaranteed student loans, something that the Constitution does not allow the federal government to guarantee, were “paused” for three years due to the recent COVID issue, which essentially abrogates centuries of contract law. And now, these loans are not being repaid on time since the resumption of those required payments.
In a blog post, U.S. Undersecretary of Education James Kvaal said 60 percent of student loan borrowers whose payments were due in October made them by mid-November. He said 22 million people had payments due in October, and over 4 million owed payments for the “first time.”
“While most borrowers have already made their first payment, others will need more time. Some are confused or overwhelmed about their options,” Kvall said. ”We want to make sure borrowers know that our…
