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  • The Imminent Student-Loan Disaster We’re Not Talking About

    08/11/2024 6:35:44 AM PDT · by karpov · 67 replies
    James G. Martin Center for Academic Renewal ^ | August 7, 2024 | Preston Cooper
    Legal battles over President Biden’s various schemes to forgive student debt continue. In July, the Eighth Circuit Court of Appeals indefinitely blocked the administration’s ultra-generous new student-loan repayment plan, which could have cost taxpayers $475 billion. Additional loan-cancelation initiatives—also certain to face legal challenges—are in the works. But the high drama of loan cancelation has drawn attention away from a more pressing issue in the student-loan system. After the pandemic-induced student-loan payment pause ended last year, the Education Department implemented a one-year transition period to allow borrowers time to ease back into the habit of paying their loans. That so-called...