Sofi yahoo finance8/17/2023 ![]() "The difficulties faced by these borrowers in managing their student loans and other debts suggest that Direct borrowers will face rising delinquencies once forbearance ends and payments resume," the analysis found. The NY Fed recently highlighted the roughly 10 million borrowers who hold private or Family Federal Education Loan (FFEL) loans owned by commercial banks and did not benefit from the payment pause. If the payment pause ends in May, 7.8 million borrowers - roughly one in three student debtors - are at "high risk" of struggling to repay their loans, according to a recent analysis from the California Policy Lab and the Student Loan Law Initiative.įor these borrowers, many of whom were in delinquency prior to the pandemic, “the pause on student loan payments worked," Professor Dalié Jiménez, director of the Student Loan Law Initiative at UC Irvine Law, said in a press release. In any case, ending the payment pause will be complicated. REUTERS/Elizabeth Frantz The payment pause worked - now what? President Joe Biden speaks during the South Carolina State University graduation ceremony at Smith Hammond Middleton Memorial Center in Orangeburg, South Carolina, U.S. ![]() We achieved over a billion dollars of revenue in all of 2021 in our first full year of profitability on an EBITDA basis, all while the federal student loan program has been on hold." "SoFi is in the business of student loans," Noto stressed. ![]() SoFi expects the student loan payment pause extension to May 1 to reduce the refinancing company's profits by $20 to $25 million, as detailed in its fourth-quarter results earlier this month. "The indecision is causing people not to be able to make vital financial decisions in their lives," Noto said, adding that it's a good opportunity for clarity before interest rates hike up to "seven" or "eight times over the next two years." In a blog post on his company's website, Noto noted that the payment pause extensions have "cost American taxpayers over $150 billion since March 2020," and determined that cancellation of $10,000 in debt for "distressed and defaulted borrowers" would be a more effective and "permanent" solution.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |