Although the Supreme Court struck down President Joe Biden’s signature student loan forgiveness program in late June, his administration has found ways to cancel more than $48 billion in debt since then.
The cancellations have come through existing federal student loan forgiveness programs, which are limited to specific categories of borrowers, such as public-sector workers, people defrauded by for-profit colleges, and borrowers who have paid for at least 20 years.
These programs are separate from the rejected forgiveness plan, which would have canceled about $430 billion of the $1.6 trillion of outstanding federal student loan debt all at one time.
The Biden administration has been granting student loan forgiveness through these existing programs on a rolling basis since coming into office and has discharged a total of $127 billion for nearly 3.6 million people to date.
Same reason mortgages can have “early payment penalties”.
Paying them off now is less money than if it takes a decade of interest.
Someone should remind the Republicans Jesus was cool with loans, but a Christian who charges interest goes straight to hell. It’s why back in the day most bankers were Jewish and why all the stereotypes about money came into being. Wealthy Christians wouldn’t loan without interest because they loved money more than helping others.
They can’t anymore
The Dodd-Frank Act in 2014 made them illegal thankfully.