Student Loans: The Impact of Policy Changes on Borrowers in the Economy and Politics

The End of the On-Ramp Period: What It Means for Students

As of now, the on-ramp period that provided crucial support for student-loan borrowers has come to an end. This period, implemented last October, allowed borrowers to miss payments without the threat of damaging credit reports. With this safety net lifted, borrowers must now brace for the financial implications of missed payments.

Consequences of Default: A Return to Reality

• Borrowers who miss payments risk significant damage to their credit scores.
• Default could lead to wage garnishment and seizure of federal benefits, including Social Security.
• Recent legal challenges hinder many from benefiting from lower monthly payments through the SAVE income-driven repayment plan.

Calls for Policy Reevaluation

Advocates are pressing President Biden to extend the on-ramp period, citing severe financial distress faced by borrowers amid the shifting economic landscape.

For further insights on the implications for education policy and borrower consequences, refer to the latest updates.