'This could result in one of the harms that the one-time student loan debt relief program was intended to avoid.'
Student loan default rates may spike if the Biden administration's loan forgiveness plan is blocked, a top official for the U.S. Department of Education warns.
The department anticipates there"could be an historically large increase in the amount of federal student loan delinquency and defaults as a result of the COVID-19 pandemic," U.S. Department of Education Under Secretary James Kvaal said in the filing. Student loan default rates could dramatically spike if the Biden administration's loan forgiveness plan is blocked, a top official for the U.S. Department of Education said in a new court filing.
The warning came as the Department of Justice asked a federal judge in Texas to stay an order that has temporarily blocked the Biden administration's debt relief program. "Unless the [Education] Department is allowed to provide debt relief, we anticipate there could be an historically large increase in the amount of federal student loan delinquency and defaults as a result of the COVID-19 pandemic," Education Department Under Secretary James Kvaal said in the filing."This could result in one of the harms that the one-time student loan debt relief program was intended to avoid." last week after Judge Mark Pittman of the U.S.
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