We recently received further confirmation of the success of President Joe Biden’s strategy to bring student loan borrowers who are delayed in their payouts up to standard.
In its current report on family debt and credit for the 1st quarter of 2023, the New York Federal Reserve noted some encouraging trends for Vice President Biden’s most recent changes to the student-loan business.
It particularly examined the effects of Biden’s “Fresh Start” strategy, first presented in April 2022, which sought to bring around 7.5 million borrowers who were in failure or payments on their student loans back into excellent standing before they had to restart repayment. They would be able to benefit from government assistance programs including Public Service Loan Forgiveness and income-driven repayment plans as a result.
Participants in this program must have federal loans that the government is holding. When they come up with a plan for starting payments, the loans would be shifted to a non-default student loan firm, and the defaulted status is eliminated from their credit records. Users can utilize the program by getting in touch with their student loan provider.